If $6000 is invested in an account that pays 3% annual compounded interest, compare the amount in the account after 10 years if the interest is compounded a) semiannually (twice a year) b) quarterly (four times a year) c) monthly (twelve times a year) d) continuously

Q: What weekly deposits should be made into a savings account paying interest at 8.9% / year compounded…

A: Formula used in calculation: Where,A = Weekly depositsFVA = Future value of the annuity (or…

Q: How much must be deposited at the beginning of each year in an account that pays 3% compounded…

A: Time value tells that amount received today is of more value than that of receiving the exact value…

Q: suppose that $47,700 is invested in certificate of deposit for 3 years at 6.2% annual interest to be…

A: The deposit facility provided by commercial banks in which the deposited amount is repaid only at…

Q: Determine the interest earned after 10 years if $200 is invested in each of the following accounts:…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Debts of $850 due in six months, $700 due in sixteen months, and $1100 due in three years are to be…

A: Time value of money is a concept of interest consideration in a transaction. Present value is…

Q: n initial amount of 1400$ is invested in an account at an interest rate of 9% per year, compounded…

A: In finance we use the concept of time value of money to compute future values and present values.…

Q: How much interest will an account earn if you deposited $605 at the end of every six months for 11…

A: Amount deposited$605Number of years11Interest rate3.50%

Q: You deposit 2,000 in an account that pays 7% interest compounded semiannually.after two years the…

A: The concept of time value of money will be used here. Money deposited today gets computed and hence…

Q: d it will become $ 6,000 at the end of 4 years, determine the nominal rate of interest and the…

A: The given problem can be solved using using RATE and EFFECT function in excel. RATE function…

Q: Calculate the future value after 3 years if $1,000 is deposited at 1.2% interest compounded monthly.

A: Calculate the future value after 3 years if $1,000 is deposited at 1.2% interest compounded…

Q: Quarterly compounding implies that interest is compounded _  times per year.   You have deposited…

A: Compound = Semiannually = 2Present Value = pv = $96,780Interest rate = r = 8 / 2 = 4%Time = t = 8 *…

Q: If $1000 is invested for ten years at an annual rate of 7.3% compounded monthly.…

A: given information  present value = $1000 time period = 10 years interest rate = 7.3% annum

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: Future value (FV) = $150,000 Interest rate = 7.6% Semi annual rate (r) = 7.6%/2 = 3.80% Period = 18…

Q: If you deposit $750 at 12.41% annual interest compounded daily, how much money will be in the…

A: P = $750r =0.1241n =364t = 4A =?

Q: what is the nominal annual rate of interest compounded quarterly if a loan of $25,000 is repaid in…

A: The act in which one person or entity provides funds to another person for defined term and agreed…

Q: An account pays 4 percent interest (yearly effective). 10,000 dollars is deposited into that account…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: How much money would be accumulated in15years for a deposit of $15,000 made at the end-ofyear zero…

A: The formula used as follows:

Q: If a deposit of $100 is made on the first day of each month into an account that pays 6% interest…

A: The compounding method is used to determine the future value of cash that is deposited today. Given;…

Q: What is the accumulated value after 14 years of monthly deposits of $415.00 earning interest at 5.8…

A: Accumulated value, often referred to as the future value, represents the total worth of an…

Q: A person deposits $1,000 for 5 years in an account that pays 7.2% per year compounded quarterly.…

A: Future value refers to the future date value when all cash flows are compounded at the given…

Q: If $6000 is deposited at the end of each half year in an account that earns 6.5% compounded…

A: The value of money refers to the concept that the value of money changes over time due to various…

Q: Find the present value of the following if the compound amount is 10,500 at 10% converted annually…

A: Present value of a compounding amount can be computed by dividing the future cash flow amount by…

Q: a) Determine the present equivalent value of $10,000 paid every three months over a period of seven…

A: The present value is the addition of the discounted values of the future payments.

Q: How much interest will an account earn if you deposited $605 at the end of every six months for 11…

A: The objective of the question is to calculate the total interest earned on an account where $605 is…

Q: Consider a $1,800 deposit earning 10 percent interest per year for 7 years. How much total interest…

A: Interest on interest is that under which is earned by the investor on his interest earned amount…

Q: A $1000 deposit in an account earns interest at an annual nominal rate of 8.00%. Interest is…

A: Future value is the accumulated value of a sum of money deposited for a specified period of time at…

Q: Determine the amount of money in a savings account at the end of 5 years, given an initial deposit…

A: Compounding: It is the practice by which the interest is credited both to an existing principal…

Q: if $204 is deposited in a savings account at the beginning of each year for 12 years and the account…

A: The given problem can be solved using FV function in excel. FV function computes amount balance in…

Q: If $1,000.00 is invested in an account for 30 years. Find the value of the investment at the end of…

A: The conceptual formula used:

Q: A payment of $4,500 was made into an account at the end of every 3 months for 12 years. a. If the…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a future…

Q: You invest $4,000 in an account that pays a fixed annual rate of 6% interest compounded yearly. How…

A: In the present question we require to calculate the future value after 7 years from the following…

Q: Payments of $1000 each are made at the end of every year for 6 years to a savings account. Calculate…

A: Future value is an estimate of future cash flows ​​that may be received at a future date, discounted…

Q: How much must be deposited at the beginning of each quarter in an account that pays 5% compounded…

A: In this question payment per quarter has to be find out. Future value , rate of return and number of…

Q: $480 is deposited at the beginning of every 6 months into a savings account. This will continue for…

A: An account where deposit made by accountholder is credited and credit balance is added with interest…

Q: Use the formula for computing future value using compound interest to determine the value of an…

A: The future value of the account can be computed by using the future value of a single deposit…

Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.