Assume you deposit 25% of your monthly check of $5500 into a savings account at a credit union that compounds interest semiannually. What is the compounding period? A) CP=2 months B) CP=4 months C) CP=6 months D) CP=8 months O D O A O B

Assume you deposit 25% of your monthly check of $5500 into a savings account at a credit union that compounds interest semiannually. What is the compounding period? A) CP=2 months B) CP=4 months C) CP=6 months D) CP=8 months O D O A O B

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Q#1: Calculate (i) the interest rate for the given situations? 1. 8% Monthly 2. 6.4% Quarterly 3. 7%…

A: Disclaimer :- as you posted multipart questions we are supposed to solve the first 3 but third…

Q: Show the steps of your calculation O For example, question: a person deposits $500 to bank now, if…

A: The objective of this question is to calculate the future value of a deposit made today, given the…

Q: Q3 rates and the period in which the X value is calculated and then calculate the X value. Draw the…

A: Note: As per the Bartleby Policy, we are restricted to answer the first question, Kindly post the…

Q: How long will it take any sum to double itself with an 11% interest rate compounded continuously? a)…

A: Continuous compounding refers to compounding interest an infinite times in a year. The formula…

Q: Determine the effective rates of interest for the following nominal rates of interest: a.) 9%…

A: The formula for calculating effective rate of interest is r = (1 + i/n)n - 1 where, r is effective…

Q: ← Occasionally a savings account may actually pay interest compounded continuously. For each…

A: Formula for the future value is given as: F = P(1+R/m)t*m F: future valueP : principle valueR : Per…

Q: A building sells for $325,000 and a 30% down payment is made. A 20-year mortgage at 4% is obtained.…

A: Here, given that the building sells for $325,000 and a 30% down payment is made.Then, we have to…

Q: None

A: Step 1:a.We have i = 12%, n = 12$600 (P/A, 12%,12) = 600 * 6.1944 PV = $3,716.62 Step 2:b.here we…

Q: S u m m a r i z e t h e c u r r e n t a n d f o r e c a s t e c o n o m i c t r e n d s…

A: ***Since the student has posted multiple questions, hence, the expert is required to solve only the…

Q: You borrowed $100,000, agreeing to pay the balance in 10 equal annual installments at 8% annual…

A: When a person opts for loan then he or she has to repay the loan with increased amount. The…

Q: allie has won a lottery that pays her $135,000 at the end of this year and increases by 11.25% per…

A: Present worth is the sum of money that must be invested to achieve a particular future goal. Future…

Q: A father wants to set up a bank account that will pay his daughter $16,000 at the end of quarter…

A: Given:Use the future value formula for annuities:in math mode at position 8: FV_1 =…

Q: At the time of retirement, a couple has $200,000.00 in an account that pays 8.4%compounded monthly.…

A: The formula for payout annuity is given below: P0=d[1-(1+rk)-nk](rk) where, P0 = the account…

Q: Suppose that under the Plan of Repayment one should pay off the debt in a number of equal…

A: Loan repayment refers to the process of paying back borrowed money, typically with interest, over a…

Q: Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar…

A: The objective of the question is to calculate the present value of two different loans. The first…

Q: The annual interest rate on a credit card is 13.99%. If the minimum payment of $10 is made each…

A: An intеrеst ratе is thе cost of borrowing monеy or thе rеturn on invеstmеnt еxprеssеd as a…

Q: If the effective annual interest rate is 16%, what is the nominal annual rate if compounding is…

A: Interest rate is the reward for the saver and the cost to the borrowing. Interest rate is an…

Q: Identify the following interest rates as nominal or effective: (ABET, SO1) A: 1%= 6% per semiannual,…

A: When comparing the nominal interest rate and effective interest rate, the primary difference between…

Q: terest Rates minal rate eriodic rate fective annual rate mul needs a loan and is speaking to several…

A: In economic aspects, the nominal interest rate or nominal rate of interest is both of two different…

Q: QUESTION 5 Compounding interest rate for a term deposit implies that A interest are calculated with…

A: The fraction of a loan that is charged to the borrower as interest is referred to as the interest…

Q: 4. Sue opens a charge card account with a department store. In the charge account agreement, the…

A: The real yearly cost of borrowing is calculated using the effective interest rate (EIR), commonly…

Q: Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar…

A: The objective of the question is to calculate the present value of two different loans. The present…

Q: DRAW CASH FLOW DIAGRAM Suppose that P 4500 is deposited each year into a bank account that pays 8%…

A: A series of money paid at regular intervals is known as an annuity. Monthly savings account…

Q: How much money should be deposited each year for 12 years if you wish to withdraw $309 each year for…

A: let x Amount Deposit for 12 years. withdrawal = 309 for 5 years starting from the being of the end…

Q: A depositor puts $40,000 in a savings account that pays 10% interest, compounded semiannually. Equal…

A: Principal amount(P)=$40,000 Interest (i) compound semi-annually i=10/2=5% or 0.05

Q: n interest pays 1% interest rate, calculate the nomina ate of interest compounded weekly? O 52% O32%…

A: Nominal Interest rate = Interest Rate x Number of Periods = 1% x 52 = 52%

Q: H o w s h o u l d y o u u s e c u r r e n t a n d p r o j e c t e d t r e n d s i n…

A: GDP refers to the monetary value of all final goods and services that produced in the domestic…

Q: My son's YouTube channel (ILYAD) is making around $1000 per year at the moment (assume payments at…

A: There are three kinds of ordinary annuity here. The ordinary annuity means the same annual amount of…

Q: What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts…

A: Annual interest rate = 9% Quarterly interest rate = 9%/4 = 2.25% Number of quarterly deposits = 8

Q: An asset purchased for $50,000 is to be depreciated over 5 years using the straight-line method.…

A: Cost of Asset = 50,000 salvage Value = 10,000 n = 5 Years

Q: What is the nominal annual interest rate if the effective annual rate is 8.1% and compounding is…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Find the second-order partial derivatives. (a) f(x, y) = x2 + 4xy + y3 fxx = fyー fxy = (b) f(x, y) =…

Q: The average monthly balance in Joy's bank account is $1,500. Joy spends the same amount of money…

Q: Which of the following coupon bonds have the highest yield to maturity (YTM)? Notation: P = Current…

A: Bond refers to the financial instrument that firms or organizations issue to the investors who want…

Q: Which formula is correct for the simple interest calculation? Select one: O a. F = P(1-in) O b. F=…

A: Simple interest considers the overall interest that is earned on a principal amount after a…

Q: Recently, a certain bank offered a 5-year CD that eams 2.58% compounded continuously. Use the given…

A: Given information: Principal amount (P): $10,000 Interest rate (r): 2.58% Compunding: continuously…

Q: Many persons prepare for retirement by making monthly contributions to a savings program. Suppose…

A: Future worth (FV) is the worth of an ongoing resource sometime not too far off in view of an…

Q: Your bank pays 2.6% interest per year You put S1,400 in the bank today and $550 more in the bank in…

A: The interest rate is the amount a lender charges a borrower and is a percentage of the principal the…

Q: Compound interest is a very powerful way to save for your retirement. Saving a little and giving it…

A: The accumulation value of an annuity is the aggregate value of the annuity. But, the cash surrender…

Q: 3. Jeff opens a charge card account with a department store. In the charge account agreement, the…

A: The nominal interest rate is the rate of interest quoted by a lender or financial institution before…

Question

100%

Assume you deposit 25% of your monthly check of
$5500 into a savings account at a credit union that
compounds interest semiannually. What is the
compounding period?
A) CP=2 months
B) CP=4 months
C) CP=6 months
D) CP=8 months
O D
O A
O B

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What simple interest rate is equivalent to simple discount rate 15 ½ % in discounting anamount for 9 months?
Show complete solution and do not use excel.
Q 2 please
Suppose that under the Plan of Repayment one should pay off the debt in a number of equal end-of-month installments (principal and interest). This is the customary way to pay off loans on automobiles, house mortgages, etc. A friend of yours has financed $15,000 on the purchase of a new automobile, and the annual interest rate is 6% (0.5% per month). a. Monthly payments over a 36-month loan period will be how much? b. How much interest and principal will be paid within three month of this loan?
need asap
Q3
(3) Suppose we invested $20,000 at an annual rate of 5% where interest is compounded continuously. (a) Write down an IVP that describes the amount of money y(t) that you will have in your account after t years. Then, solve the IVP and compute how much money you expect to have in your account after 10 years. (b) Now suppose you want to have $100,000 in your account after those 10 years. In order to accomplish that, you will make yearly deposits of D dollars. Find D, so that y(10) = $100,000. Note that we still have y(0) = $20,000.
4. An engineering consultant wants to withdraw $16,000 per year for each of the next 10 years to purchase hardware and software upgrades. How much money must the consultant deposit initially in an account that earns 4% interest, compounded annually?
Please help me answer numbers 2 & 4. Thank you!
Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,200 is set aside each year and invested in a savings account that pays 20% interest per year, compounded continuously. a. Determine the accumulated savings in this account at the end of 24 years. b. In Part (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 24. The annuity will extend from the EOY 25 to the EOY 34. What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change? Click the icon to view the interest and annuity table for continuous compounding when /-20% per year. CODE a. The accumulated savings amount at the end of 24 years will be $ (Round to the nearest dollar.)
Show solution
Question a Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line .