es Problem 5-1 Simple Interest versus Compound Interest [LO1] First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made a deposit of $58,000 in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Difference in accounts $ 2014 0.00

Nikul

Question 9 What is the value in year 4 of a $1,600 cash flow made in year 5 if interest rates are 8 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Value in 4Years

ANSWER 1,2,3

Problem 7 Intro You have $3,000 in your savings account, and want to buy a car for $20,000. Part 1 If you are not depositing any new money into your account and the interest rate on your savings account is 6% per year, how many years do you have to wait before you can buy the car? 1+ decimals Submit

Question 7 ✔) Listen You have just deposited X dollars in your bank account that pays interest of 22 percent p.a.You discover that at the end of one year you have $ 21,859 in the account. What was X, that is, the amount of money that you deposited today? (Record your answer without a dollar sign, without commas and round your answer to 2 decimal places; that is, record $3,245.847 as 3245.85). Your Answer: Answer Question 8 Listen You want to withdraw $ 23,714 from your account at the end of one year and $ 57,667 at the end of the second year. How much should you deposit in your account today so that you can make these withdrawals? Your account pays 5 percent p.a. (Record your answer without a dollar sign, without commas and round your answer to 2 decimal places; that is, record $3,245.847 as 3245.85).