Suppose you have $5,000 to invest for the next 40 years. You are given 3 choices on where to invest your money.Account #112.20% compounded weeklyAccount #212.18% compounded daily12.16% compounded continuouslyAccount #3Calculate the APR (assume P-$100, t=1 year) for each account. Round to 2 decimal places, in percent form.APRAccount #1%Account #2%Account #3%SHOW WORK BELOW:Based on your calculations, which account will you invest your $5,000? Why? How much money will you have after 40years in the account that you have chosen? How much in total interest will you gain? In other words, from $5,000, by howmuch did your money increase?

Calculating APR (Annual Percentage Rate)We'll use the concept of Effective Annual Rate (EAR) to…

Answered: Suppose you have $5,000 to invest for…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 3CE

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You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
You deposit $400 at the end of each month into an account earning 3.7% interest compounded monthly. a) How much will you have in the account in 30 years? P/Y = C/Y = N = I/Y = % PV = $ PMT = $ FV = $ (round to the nearest cent) b) How much will be the total amount of money deposited into the account after 30 years? Total Deposited = $ (enter a positive value) c) How much total interest will you earn? Total Interest= $ (enter a positive value, and round to the nearest cent) ( Explain all point of question with proper step by step Answer. )
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You deposit $5100 in an account earning 4% compound interest for 3 years. Find the future value and the interest earned for each of the following compounding frequencies. Round all answers to two decimal places where applicable. Enter positive values for the Interest Earned. (For this question: 1 year = 365 days, including leap years) Frequency Semiannually Daily > Next Question (P/Y = C/Y) N Future Value FA $ Interest earned
An investor placed $2,000 per year at the end of each year into an investment account. Immediately after the 15th payment, the value of money in the account was $58,720. What is the average annual rate of return the investor has earned on the account? Group of answer choices 7.0% 9.0% 5.1% 6.3%
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Felipe Rivera's savings account has a balance of $3901. After 3 years what will the amour of interest be at 1.9% compounded quarterly? Select one: O a. $228.25 O b. $37.06 O c. $233.25 O d. $219.25
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You initially invest $400 in a savings account that pays a yearly interest rate of 3%. (a) Write a formula for an exponential function giving the balance in your account as a function of the time since your initial investment. (Let B be the account balance in dollars and t be the number of years since the initial investment.) 8(t)= dollars (b) What monthly interest rate best represents this account? Round your answer to three decimal places. % (c) Calculate the decade growth factor. (Round your answer to two decimal places.) (d) Use the formula you found in part (a) to determine how long it will take for the account to reach $536. (Round your answer to the nearest whole number.) yr Explain how this is consistent with your answer to part (c), At the end of one decade, there will be $ where the account reaches $536 at the end of This --Select-- o the answer found above years,
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