Your bank offers a savings account that pays a stated (nominal) interest rate of 12 percent...

Your bank offers a savings account that pays a stated (nominal) interest rate of 12 percent per year, compounded quarterly.

Requirement 1:

If you deposit $8,000 today into this account and leave it invested for 6 years, how much will you have in the account at the end of Year 6? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Account Balance

$

Requirement 2:

What is the effective annual interest rate earned on money invested in this account? (Round your answer to 2 decimal places (e.g., 32.16).)

Effective Annual Rate

%

Requirement 3:

What is the highest effective annual rate attainable with a 12 percent nominal rate? (Round your answer to 2 decimal places (e.g., 32.16).)

Highest Effective Rate

%

Expert Solution

jeff jeffy answered 7 months ago

Your bank offers a savings account that pays a stated (nominal) interest rate of 10 percent...

Your bank offers a savings account that pays a stated (nominal) interest rate of 10 percent per year, compounded semiannually. Requirement 1: If you deposit $15,000 today into this account and leave it invested for 5 years, how much will you have in the account at the end of Year 5? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Account Balance $ Requirement...

Allied Bank offers a nominal rate of 5.0% interest, compounded quarterly on a savings account. Standard...

Allied Bank offers a nominal rate of 5.0% interest, compounded quarterly on a savings account. Standard Bank offers 6.0% interest compounded annually on a savings account. Which bank will you select to deposit your money?

Bank A offers a savings account with interest rate of 2% compounded quarterly. Bank B offers...

Bank A offers a savings account with interest rate of 2% compounded quarterly. Bank B offers a savings account with interest rate of 2.25% compounded semi-annually. Assume customer can deposit $5,000 and leave it on deposit for 4 years. What would be the final value for each bank account?

"You deposit $32,000 in a savings account that pays a nominal interest rate of 4.2% compounded...

"You deposit $32,000 in a savings account that pays a nominal interest rate of 4.2% compounded monthly. 3 years later, you deposit $14,000. 3 years after the second deposit, you make another deposit in the amount of $9,000. 6 years after the third deposit, half of the accumulated funds are transferred to a fund that pays a nominal interest rate of 6.9% compounded quarterly. How much total will you have in the accounts 4 years after the transfer?" SHOW ALL...

12. Second Union Bank pays 10 percent simple interest on its savings account balances, whereas Third...

12. Second Union Bank pays 10 percent simple interest on its savings account balances, whereas Third Street Bank pays 10 percent compounded annually. If you made a $100,000 deposit in each bank, how much more money would you earn from your Third Street Bank account at the end of 10 years? Group of answer choices $59,374.25 $90,625.75 $159,374.25 $190,625.75 $259,374.25

First City Bank pays 8 percent simple interest on its savings account balances

First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made a $61,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Difference in accounts =

You just deposited $25,000 in a bank account that pays a 12.0% nominal interest rate, compounded...

You just deposited $25,000 in a bank account that pays a 12.0% nominal interest rate, compounded semi-annually. If you also add another $3,000 to the account each year over the next five years, how much will be in the account five years from now?

You just deposited $2,500 in a bank account that pays a 4.0% nominal interest rate, compounded...

You just deposited $2,500 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. If you also add another $5,000 to the account one year (4 quarters) from now and another $7,500 to the account two years (8 quarters) from now, how much will be in the account three years (12 quarters) from now? Group of answer choices $18,563.53 $17,679.55 $16,035.88 $16,837.67 $15,234.08

You just deposited $3,500 in a bank account that pays a 4.0% nominal interest rate, compounded...

You just deposited $3,500 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. If you also add another $5,000 to the account one year (4 quarters) from now and another $7,500 to the account two years (8 quarters) from now, how much will be in the account three years (12 quarters) from now?

Suppose Evan deposited $10,000 into a savings account today. The account pays a nominal annual interest...

Suppose Evan deposited $10,000 into a savings account today. The account pays a nominal annual interest rate of 12%, but interest is compounded quarterly. Assuming that he makes no additional deposits into or withdrawals from the account, what will his ending balance be 10 years from today?

Question