Carol made a deposit of $1027.00 into a bank account that earns interest at 7.9% compounded quarterly. The deposit earns interest at that rate for two years. (a) Find the balance of the account at the end of the period. (b) How much interest is earned? (c) What is the effective rate of interest?

Carol made a deposit of $1027.00 into a bank account that earns interest at 7.9% compounded quarterly. The deposit earns interest at that rate for two years. (a) Find the balance of the account at the end of the period. (b) How much interest is earned? (c) What is the effective rate of interest?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

USE BA 2 PLUS CALCULATOR

Carol made a deposit of $1027.00 into a bank account that earns interest at
7.9% compounded quarterly. The deposit earns interest at that rate for two
years.
(a) Find the balance of the account at the end of the period.
(b) How much interest is earned?
(c) What is the effective rate of interest?
(a) The balance at the end of the period is $
(Round the final answer to the nearest cent as needed. Round all
intermediate values to six decimal places as needed.)

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