A deposit of $5,000 earns interest at 4% compounded semi-annually. After three-and-a-half years, the interest rate...

A deposit of $5,000 earns interest at 4% compounded semi-annually. After three-and-a-half years, the interest rate is changed to 4.5% compounded quarterly. How much is the account worth after 7 years?

Jan is saving for a new bike that will cost $800. She has $500, which she has invested at 7% compounded semi-annually. How many years will it be (approximately) until she has $800?

How long will it take for money to double if it is compounded quarterly at 6%?

Expert Solution

Answer to first question in the list:

jeff jeffy answered 6 months ago

How many years will it take money to quadruple if it earns 10% compounded semi-annually?

You plan to borrow $15,000 for 3 years. The interest rate is 8% compounded semi-annually. The...

You plan to borrow $15,000 for 3 years. The interest rate is 8% compounded semi-annually. The terms require you to amortize the loan with equal payments made every period. a) Calculate the amount of payment you would be paying every period? b) Set-up an amortization schedule

A. An investor places $1,000 in a Certificate of Deposit that pays 1.5% annual interest. If interest is compounded annually, how much will the investor have after three years?

A. An investor places $1,000 in a Certificate of Deposit that pays 1.5% annual interest. If interest is compounded annually, how much will the investor have after three years? B. Using the same information in problem 1, how much would the investor have if interest was compounded quarterly? C. An investor has $1,000 and wants to open a Certificate of Deposit. If Citibank offers a CD that pays interest semiannually at a rate of 1.3% while Chase offers a CD...

How much will be in an account at the end of 5 years if you deposit $10,000 today at 8.7% annual interest, compounded semi-annually?

Practice Time Value of Money Problems 1. How much will be in an account at the end of 5 years if you deposit $10,000 today at 8.7% annual interest, compounded semi-annually? 2. What is the balance at the end of 10 years if $2.500 is deposited today and the account earns 4% interest annually? What about if it's quarterly interest? Which one should be more and why? 3. Suppose you want to have $500,000 saved by the time you reach 30 years old....

Given a nominal interest rate of 6.5% compounded semi-annually, compute: a) The equivalent nominal rate of...

Given a nominal interest rate of 6.5% compounded semi-annually, compute: a) The equivalent nominal rate of discount compounded quarterly b) The equivalent constant force of interest

1. Using Table 1---Find the Future Value of $5,000 at 6% interest compounded semi-annually for 2...

1. Using Table 1---Find the Future Value of $5,000 at 6% interest compounded semi-annually for 2 years. $5,627.55 $5.835.64 $5,527.55 $5,735.64 2.Using Table 2---Find the Compound Interest on $2,500 at .75% interest compounded daily by Leader Financial Bank for 20 days. $1.02 $10.30 $1.03 $6.31 3.Using Table 3---Find the amount of money that needs to be invested in order to have $1,500 in 3 years if you would receive 2.5% interest compounded annually. $1,376.45 $1,403.56 $1,259.35 $1,392.90 4.Using Table 1---Find...

What’s the future valueof $100 after 3 years if the appropriate interest rate is 8%, compounded annually?

What’s the future valueof $100 after 3 years if the appropriate interest rate is 8%, compounded annually? NPERRATEPVPMTFV

a company deposits 3700 a month into an account that earns 9% interacest compounded semi annually...

a company deposits 3700 a month into an account that earns 9% interacest compounded semi annually how much money will the company have accumulated in 6 years assume no interperiod compunding

Question 1: A bank A offers its depositors an interest rate of 16.6% compounded semi annually....

Question 1: A bank A offers its depositors an interest rate of 16.6% compounded semi annually. Bank B also gives its depositors an interest rate of 16% compounded annually. Determine the effective interest rate for each bank and give your recommendation. Question 2: Ama is considering these three investment projects with the following details: Investment A requires a cash of $70 million at 12.6% compounded semiannually for 5 years. Investment B requires a cash of $65 million at 10% compounded...

Lisa Richter made a one time deposit of $5,000 at 4% compounded semiannually for 5 years....

Lisa Richter made a one time deposit of $5,000 at 4% compounded semiannually for 5 years. What would her balance be at the end of five years assuming she is still earning 4% compounded semiannually?

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