Problem 2. On January 1, 1995, an investor opened a savings account at Bank Awith a deposit of $3,000 earning simple interest at an annual rate of 5.0%. At the endof business on December 31, 2003 the investor closed the account and invested theaccumulated amount in a savings account at Bank B earning 7.0% annual effectiverate of interest on a compound interest basis.(1)What should the balance be in the investor's savings account on De-cember 31, 2009?(2)On January 1, 2020, the investor receives a letter from Bank B statingthat an internal audit has discovered that interest was overcredited by 1% during theyear ending December 31, 2006 and undercredited by 1% during December 31, 2009.¹Based on this information, what should be the balance be in the investor's savingsaccount on December 31, 2009?

The simple interest is the interest earned on the same amount for each successive period. Compound…

Answered: Problem 2. On January 1, 1995, an…

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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3
Your wealthy uncle established a $2,600 bank account for you when you were born. For the first 7 years of your life, the interest rate earned on the account was 5%. Since then, rates have been only 3%. Now you are 22 years old and ready to cash in. How much is in your account? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Amount
C. Solve ASAP
P4.4B The August 31 bank statement of Palm Harbor Apartments has just arrived from Florida First Bank To prepare the Palm Harbor bank reconciliation, your gather the following data: a Palm Harbor's Cash account shows a balance of $3,366.14 on August 31 b. The August 31 bank balance is $4,484 22 E The bank statement shows that Palm Harbor earned $38 19 of interest on its bank bal- ance during August. This amount was added to Palm Harbors bank balance d. Palm Harbor pays utilities ($750) and insurance ($290) by EFT e. The following Palm Harbor checks did not clear the bank by August 31 Check No. Amount 237 $ 46.10 288 141 00 291 293 578.05 11.87 609 51 294 8.88 295 296 101 63 * The bank statement includes a deposit of $891.17, collected by the bank on behalf of Paim Harbor Apartments Of the total, $811 81 is collection of a note receivable, and the remainder is interest revenue. * The bank statement lists a $10.50 bank service charge OAugust 31, the Palm Harbor treasurer deposited…
Your local bank is offering a new type of retirement savings account. An initial deposit is made to the account when it is opened. This money and any accumulated interest must be left in the account for 28 years. No additional deposits can be made. On the day the account is opened and on each annual anniversary of the initial deposit, the account balance is reviewed and the following terms apply: 1. If the account balance is less than or equal to $20,000, interest for the next annual period is 7 %/year compounded annually. 2. If the account balance is greater than $20,000 but less than or equal to $40,000, interest for the next annual period is 10%/year compounded quarterly. 3. If the account balance is greater than $40,000, interest for the next annual period is 12%/year compounded monthly. You decide to open an account under these terms today with $9,400. How much money will you withdraw when the account is closed 28 years from today? $
PLEASE help me answer these questions, thank you very much. 1) When the amount earned on a deposit has become part of the principal at the end of a specified time period the concept is called A) discount interest. B) compound interest. C) primary interest. D) future value. 2) The future value of $100 received today and deposited at 6 percent for four years is A) $126. B) $ 79. C) $124. D) $116. 3) The future value of $200 received today and deposited at 8 percent for three years is A) $248. B) $252. C) $158. D) $200. 4) The amount of money that would have to be invested today at a given interest rate over a specified period in order to equal a future amount is called A) future value. B) present value. C) future value of an annuity. D) present value of an annuity. 5) The future value of a dollar ________ as the interest rate increases and ________ the farther in the future an initial deposit is to be received. A) decreases; decreases B) decreases; increases C) increases;…
4 Problem From the following particulars, prepare Bank reconciliation statement of Mr. Naveed as on June 30, 2002. · Balance as per bank book Dr. 32,000 · Cheques deposited but not yet collected by bank 20,200 · Cheques issued but not yet paid by bank 13,000 · Dividend credited by bank on June 30, but the intimation was received later 2,000 · Interest credited by bank 250 · Bank charges debited by bank 50 It is assumed that books of accounts are not closed yet.
10. Elly's credit card record for the last 7 months is below. Based on the information from the table, what will be her new balance at the end of month 7? End of Month Previous New Payment Finance Principal New Balance Charges Received Charges Paid Balance 1 $0.00 $2200.00 $0.00 $0.00 $0.00 $2200.00 5 6 234567 2 $2200.00 $0.00 $44.00 $33.00 $11.00 $2189.00 $2189.00 $0.00 $43.78 $32.84 $10.95 52178.06 4 $2178.06 $0.00 $43.56 $32.67 $10.89 $2167.16 $2167.16 $0.00 $43.34 $32.51 $10.84 $2156.33 $2156.33 $0.00 $43.13 $32.34 $10.78 $2145.55 $2145.55 $0.00 $42.91 $32.18 $10.73 $?
1. What is the current balance that Joe Doe owes? $1270.54 2.What is the total amount that Joe charged for this billing cycle? a. List the purchases that Joe made. 3. How much did Joe pay for his last payment? 4. Why was Joe charged $35 by the credit card company? 5. How much interest was Joe charged for this month? 6. What is the credit limit that Joe has for this credit card? a. What is Joe’s available credit? 7. What is APR for purchases for this credit card? 8. What is the minimum payment amount that Joe must make? 9. When is the due date for Joe to make a payment? 10. Did Joe take a cash advance on this credit card? 11.Why did you think the federal government requires that financial institutions place a “Total Minimum Payment Warning” on all credit card statements?
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