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Would you rather have a savings account that pays 5% interest compounded semiannually or one that pays 5% interest compounded daily? Explain.
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- Suppose that you have the capacity to pay, would you rather borrow a loan that is amortized monthly or one that is amotized quarterly? what are your considerations when availing a loan (qualitative or quantitative) discuss.Would you rather invest in an account that pays 7% with annual compounding or7% with monthly compounding? Would you rather borrow at 7% and make annualor monthly payments? Why?Can we calculate the total annual interest payment for a credit card by using the future value formula? how?
- Would you rather have a 10% loan that compounds quarterly or monthly? Explain your reasoning.If interest on a savings account is compounded semiannually, the effective rate of interest will Group of answer choices equal to the nominal rate. lower than the nominal rate. higher than the nominal rate. lower than the simple rate. the same as the simple rate.Hello! I have a financial problem that I am having issues finding the compounding formula for. The question: Given the same annual interest rate, would you rather have a savings account that paid interest compounded on a monthly basis, or one that compounded interest on an annual basis? Perform the calculation to support your answer.-the amount for interest rates and any other amount are just made-up numbers that can be used as an example. thank you for the help
- Suppose that you want to avoid paying interest and decide you'll only buy the furniture when you have the money to pay for it. An annuity is basically the opposite of a fixed-installment loan: you deposit a fixed amount each month and receive interest based on the total amount that's been saved. The future value formula is: A = 12M 1+ 12 7 12t - 1 where M is the regular monthly payment, r is the annual interest rate in decimal form, and t is the term of the annuity in years. With a monthly payment of $110, what would the future value be if you chose an annuity with a term of two years at 4.5% interest? Round you answer to the nearest cent. The future value would be $. X S2. If you receive $249 each quarter for 4 quarters and the discount rate is 0.08, what is the present value? (show the process and can use financial calculator)Which do you prefer: a bank account that pays 10% per year (EAR) for 3 years or a. An account that pays 5.0% every 6 months for 3 years? b. An account that pays 15.0% every 18 months for 3 years? c. An account that pays 1.0% per month for 3 years? a. An account that pays 5.0% every 6 months for 3 years? If you deposit $1 into a bank account that pays 10% per year for 3 years, the amount you will receive after 3 years is $ If you deposit $1 into a bank account that pays 5.0% every 6 months for 3 years, the amount you will receive after 3 years is $ (Select from the drop-down menu.) (Round to five decimal places.) Therefore, you will prefer b. An account that pays 15.0% every 18 months for 3 years? If you deposit $1 into a bank account that pays 15.0% every 18 months for 3 years, the amount you will receive after 3 years is $ Therefore, you will prefer (Select from the drop-down menu.) c. An account that pays 1.0% per month for 3 years? If you deposit $1 into a bank account that pays…
- In this project, you will use a graphing calculator to compare savings plans. For instance, suppose you are depositing $1000 in a savings account and are given the following options: 4 • 6.2% annual interest rate, compounded annually 6.1% annual interest rate, compounded quarterly 6.0% annual interest rate, compounded continuously •2. Suppose you have a bank account into which you make $100 deposits each month. You find a bank account paying r 100% (r is a decimal rate) per month. You would like to save up for a $2,000 car down payment, which you would like to have in 15 months. What must the bank account pay in order for this to be accomplished?< A friend asks to borrow $51 from you and in return will pay you $54 in one year. If your bank is offering a 6.2% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $51 instead? b. How much money could you borrow today if you pay the bank $54 in one year? c. Should you loan the money to your friend or deposit it in the bank?