An initial amount of $10,000 is deposited into a high-yield savings account with an 8.6% APR. Complete the table below, assuming that no additional deposits will be made. Round each answer to 2 decimal places. accumulated amount after 8 years effective rate years required for balance to be $100,000 interest compounded semiannually $ % per year 6 years interest compounded continuously 2 $ 4 % per year 6 years

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question
An initial amount of $10,000 is deposited into a high-yield savings account with
an 8.6% APR. Complete the table below, assuming that no additional deposits
will be made.
Round each answer to 2 decimal places.
accumulated amount
after 8 years
effective rate
years required for
balance to be $100,000
interest compounded
semiannually
1
$
3
% per year
5
years
interest compounded
continuously
2
$
4
% per year
6
years
Transcribed Image Text:An initial amount of $10,000 is deposited into a high-yield savings account with an 8.6% APR. Complete the table below, assuming that no additional deposits will be made. Round each answer to 2 decimal places. accumulated amount after 8 years effective rate years required for balance to be $100,000 interest compounded semiannually 1 $ 3 % per year 5 years interest compounded continuously 2 $ 4 % per year 6 years
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Present Value
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education