On June 1st, 2014 Brandon invested $4 500 in a GIC at an annual interest rate that was compounded quarterly. On June 1st, 2018 Nihal invested $5 500 into the same GIC at the same annual interest rate, also compounded quarterly. On June 1st of 2020, they each cashed in their GIC and received the exact same amount. What annual interest rate was the GIC earning? Express answer as a percentage, rounded to 2 decimals.

On June 1st, 2014 Brandon invested $4 500 in a GIC at an annual interest rate that was compounded quarterly. On June 1st, 2018 Nihal invested $5 500 into the same GIC at the same annual interest rate, also compounded quarterly. On June 1st of 2020, they each cashed in their GIC and received the exact same amount. What annual interest rate was the GIC earning? Express answer as a percentage, rounded to 2 decimals.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 21CE

See similar textbooks

Similar questions

On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
Dave borrowed $730 on January 1, 2019. The bank charged him a $4.00 service charge and interest was $54.40. If Dave paid the $730 in 12 equal monthly payments, what was the APR? (Enter your answer as a percent rounded to 1 decimal place.) Annual percentage rate %
Crane Curtin borrowed $33,300 on July 1, 2022. This amount plus accrued interest at 8% compounded annually is to be repaid on July 1, 2027. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) How much will Crane have to repay on July 1, 2027? (Round answer to 2 decimal places, e.g.25.25.) Amount to be repaid on July 1, 2027 2$
Pharoah Curtin borrowed $31,500 on July 1, 2027. This amount plus accrued interest at 8% compounded annually is to be repaid on July 1, 2032 Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) How much will Pharoah have to repay on July 1, 2032? (Round answer to 2 decimal places, e.g. 25.25.) Amount to be repaid on July 1, 2032 $
Crane Curtin borrowed $33,300 on July 1, 2022. This amount plus accrued interest at 8% compounded annually is to be repaid on July 1. 2027. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) How much will Crane have to repay on July 1, 2027? (Round answer to 2 decimal places, eg. 25.25.) Amount to be repaid on July 1, 2027 24
On April 1, 1998, Marcus Chapman deposited $4000 into an Individual Retirement Account (IRA) paying interest at the rate of 3% per year compounded continuously. Assume that he deposited $4000 annually thereafter. If the interest is paid at the same initial rate, approximately how much did he have in his IRA at the beginning of 2014? (Round your answer to the nearest whole number.)
Dave borrowed $550 on January 1, 2022, and paid it all back at once on December 31, 2022. The bank charged him a $3.50 service charge, and interest was $40.70. What was the APR? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Annual percentage rate %
On 12 May 2019, Alaa invested his money in Certificate of Deposit (CD) of Bank TTC, this CD has 5000 $ of face value and 6 percent interest.This CD will mature on 10 December 2019. Calculate the effective rate on his investment in this CD. ( assume 1 year are 365 days)
George borrowed $1,500 from Sally on April 13, 2018. George repaid the loan on September 20, 2018, and paid interest of $60. What annual simple rate of interest did George pay? (round to two decimals)
For items 16-20 Suppose that Zab borrowed P50,000 from a cooperative on January 8, 2020 and paid the entire sum including interest on April 3 of the same year, and that the interest rate is 1.5%. 16. Determine the exact time for the computation of exact interest. 17. Determine the approximate time for the computation of ordinary interest. 18. Find the amount of interest earned, if it is computed using the exact simple interest. 19. Find the amount of interest earned, if it is computed using the ordinary simple interest. 20. Find the amount of interest earned, if it is computed using the banker's rule.
Ted deposited $1750 in an RRSP on March 1, 2014, at 3% compounded quarterly. Subsequently the interest rate was changed to 4% compounded monthly on September 1, 2016, and to 4.5% compounded semi-annually on June 1, 2018. What was the value of the RRSP deposit on December 1, 2020, if no further changes interest were made? The value of the RRSP deposit is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Q3. Miss Aisha deposited RO 5000 in a fixed deposit at 5 % interest compounded semi-annually for 5 years. At the beginning of year 3, he deposited an additional RO 2000 at 7 % rate of interest compounded quarterly. a) What will be the total balance in his account after 5 years? b) Simple interest and compound interest method generate different amount of interest. Discuss and give reason to your answer c) If Miss Aisha would have deposited the same amount for the same period and at the same rate of simple interest, how much amount he would have got at the end of 5 years?