K Two accounts each begin with a deposit of $6000. Both accounts have rates of 4.6%, but one account compounds interest once a year while the other account compounds interest continuously. Make a table that shows the amount in each account and the interest earned after one year, five years, ten years, and 20 years. Click the icon to view some finance formulas. 1 year 5 years 10 years Compounded annually Compounded continuously Balance Interest Balance Interest 20 years (Round to the nearest dollar as needed)

K Two accounts each begin with a deposit of $6000. Both accounts have rates of 4.6%, but one account compounds interest once a year while the other account compounds interest continuously. Make a table that shows the amount in each account and the interest earned after one year, five years, ten years, and 20 years. Click the icon to view some finance formulas. 1 year 5 years 10 years Compounded annually Compounded continuously Balance Interest Balance Interest 20 years (Round to the nearest dollar as needed)

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

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How much money should be deposited today in an account that earns 7% compounded semiannually so that it will accumulate to $9000 in three years? a Click the icon to view some finance formulas. ..... The amount of money that should be deposited is $ (Round up to the nearest cent.) Formulas In the provided formulas, A is the balance in the account after t years, P is the principal investment, r is the annual interest rate in decimal form, n is the number of compounding periods per year, and Y is the investment's effective annual yield in decimal form. nt A A = P 1+ P = A =Pet Y = - 1 nt 1+ Print Done
a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate $? at the end of each month 5.5% compounded monthly Click the icon to view some finance formulas. Time 11 years b. $ of the $200,000 comes from deposits and (Use the answer from part (a) to find these answers. Financial Goal $200,000 a. The periodic deposit is S (Do not round until the final answer. Then round up to the nearest dollar as needed.) 2 comes from interest. Round to the nearest dollar as needed.)
The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. A Find how much money there will be in the account after the given number of years. 8. Find the interest earned. Click the icon to view some finance formulas A The amount of money in the account after 3.5 years is (Round to the nearest hundredth as needed.) Principal $9500 Rate 7.5% Compounded daily Time 3.5 years
You deposited $5,000 four years ago into a bank account. Two years ago, you deposited an additional $4,000. Assume an annual interest rate of 6%. How much will be in the account in ten years from now? Use a $ symbol and a comma and zero decimal places
= A bank features a savings account that has an annual percentage rate of r interest compounded quarterly. Tatiana deposits $9,000 into the account. The account balance can be modeled by the exponential formula A(t) = a (1 + 7-)kt, where A is account value after t years, a is the principal (starting amount), r is the annual percentage rate, k is the number of times each year that the interest is compounded. (A) What values should be used for a, r, and k? a = r = 5.6% with k = (B) How much money will Tatiana have in the account in 7 years? Answer = $ 7. Round answer to the nearest penny. APY = = %. Round answer to 3 decimal places. (C) What is the annual percentage yield (APY) for the savings account? (The APY is the actual or effective annual percentage rate which includes all compounding in the year).
The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. Click the icon to view some finance formulas. A. Find how much money there will be in the account after the given number of years. B. Find the interest earned. A. The amount of money in the account after 2 years is $. (Round to the nearest hundredth as needed.) Principal $7000 B. The amount of interest earned is $ (Round to the nearest hundredth as needed.) Rate 7% Compounded quarterly Time 2 years
Tab Window Hélp sponse The balance of an interest-bearing account can be modeled by an exponential equation. For example, consider an initial deposit of $2000 at an annual interest rate of 6%. The interest earned each year is deposited into the account at the end of the year. A. Assuming that no withdrawals or deposits are made, write an equation that models the account balance after x years. Your answer B. What is the account balance at the end of the 10 years? Your answer C. Create a graph that shows the increase in the account balance over the next 20 years, including your initial deposit. Your answer D. Using the graph, estimate how many years it will take for the initial deposit to double. Your answer E. If you deposited $2000 in an account of this type, what would the account balance be when you are 45 years old assuming that you are 18 years of age right now?
A depositor opens a new savings account with $4000 at 6% compounded semiannually. At the beginning of year 5, an additional $6000 is deposited. At the end of six years, what is the balance in the account? Click the icon to view some finance formulas + The balance in the account at the end of 6 years is $ (Do not round until the final answer. Then round to the nearest cent as needed.) GIS
a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate $? at the end of each month 4.5% compounded monthly i Click the icon to view some finance formulas. Time 14 years Financial Goal $210,000 a. The periodic deposit is $. (Do not round until the final answer. Then round up to the nearest dollar as needed.) b. $ of the $210,000 comes from deposits and $ comes from interest. (Use the answer from part (a) to find these answers. Round to the nearest dollar as needed.)
Suppose you invest S11.570.00 into an account earming an interest rate of 2.484% compounded continuously for 2 yeart and thereafter earning an interest rate of 3.417% compounded weekly. How much money is in the account after 9 years? The amount in the account is (Note: Your answer should have a dollar sign and be accurate to two decimal places)
A bank features a savings account that has an annual percentage rate of r = 3.9% with interest compounded quarterly. Landon deposits $7,500 into the account. kt The account balance can be modeled by the exponential formula A(t) = a(1+ where A is account value after t years, a is the principal (starting amount), r is the annual percentage rate, k is the number of times each year that the interest is compounded. (A) What values should be used for a, r, and k? a = r = k = (B) How much money will Landon have in the account in 7 years? Answer = $ Round answer to the nearest penny. (C) What is the annual percentage yield (APY) for the savings account? (The APY is the actual or effective annual percentage rate which includes all compounding in the year). APY = %. Round answer to 3 decimal places. Get help: Video MacBook Pro
The balance of an interest-bearing account can be modeled by an exponential equation. For example, consider an initial deposit of $10000 at an annual interest rate of 5%. The interest earned each year is deposited into the account at the end of the year. A. Assuming that no withdrawals or deposits are made, write an equation that models the account balance after x years. Your answer B. What is the account balance at the end of the 7 years? Your answer C. Create a graph that shows the increase in the account balance over the next 15 years, including your initial deposit. Your answer D. Using the graph, estimate how many years it will take for the initial deposit to double. Your answer E. If you deposited $5000O in an account of this type, what would the account balance be when you are 50 years old assuming that you are 20 years of age right now? Your answer OCT 16

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