How many years will it take for the balance left in a savings account to increase...

How many years will it take for the balance left in a savings account to increase from
2 of 2
$1,000 to $1,500 if interest is received at a nominal rate of 6% compounded
semiannually throughout the period?

Expert Solution

FV= PV*(1+r)^n

Where,
FV= Future Value
PV = Present Value
r = Interest rate =6%/2 =3%
n= periods in number = Six months

1500= $1000*( 1+0.03)^n

1500/1000 =1.03^n

1.5 =1.03^n

n =13.72

Number of years = 13.72/2
=8.86 years

jeff jeffy answered 2 years ago

If GDP is $20 trillion, how many years will it take for GDP to increase to...

If GDP is $20 trillion, how many years will it take for GDP to increase to $40 trillion if annual growth is 10 percent? Instructions: Enter your answer as a whole number. years.

How much will the savings account be worth in 35 years?

Suppose you save $1,000 per month for 35 years. The bank promises you an annual interest rate of 3% compounded monthly. How much will the savings account be worth in 35 years? (Assume no withdrawals take place).

What is the difference between Current Account balance and Balance of Trade? How many years has...

What is the difference between Current Account balance and Balance of Trade? How many years has the US been running CA deficit? Is it a problem for a country to have CA deficit? Why or why not? Is it a sign of economic weakness? Why or why not? Do CA deficits cost Americans jobs? Why or why not? Can the US continue to run this deficit indefinitely? Why or why not? Incorporate all these questions in your original post. Use...

How long will it take for $45,000 placed in a savings account earning 10% interest rate...

How long will it take for $45,000 placed in a savings account earning 10% interest rate per year to grow into $70,000? A. 5.64 years B. 5.14 years C. 4.64 years D. 4.14 years

- How many years will it take for $100,000 to grow to $500,000 if it is...

- How many years will it take for $100,000 to grow to $500,000 if it is invested at an annual interest rate of 9.15%? Round to the nearest 0.01. - You are offered a line of credit with a quoted interest rate of 20% with daily compounding. What is your effective annual interest rate? Round to the nearest 0.01%.

1. Find the balance after 5 years in a savings account that pays 2.5% APR compounded...

1. Find the balance after 5 years in a savings account that pays 2.5% APR compounded monthly if deposits are made to the account each month in the amount of $100. 2. A friend has an IRA with an APR of 6.25%. She stared the IRA at age 25 and deposits $50 per month. a) How much will her IRA contain when she retires at age 65? b) How much money did she contribute to the account? ...

Suppose you have set a specific goal for the balance in your savings account 12 years...

Suppose you have set a specific goal for the balance in your savings account 12 years from today. You have been making year-end deposits of $2,000 per year for the past 8 years, and this annual deposit (if continued for 12 more years) would have been sufficient to reach your goal under the 10 percent average annual interest rate (annual compounding) that you have been receiving. However you believe that the average annual interest rate on your deposits will be...

How many years will it take $7,000 to grow to $11,300 if it is invested at...

How many years will it take $7,000 to grow to $11,300 if it is invested at 3.25% compounded continuously?

How many years will it take $3,000 to grow to $5,700 if it is invested at...

How many years will it take $3,000 to grow to $5,700 if it is invested at 9% (A) compounded quarterly? (B) compounded continuously?

Write a program that calculates the balance of a savings account at the end of a...

Write a program that calculates the balance of a savings account at the end of a three month period. It should ask the user for the starting balance and the annual interest rate. A loop should then iterate once for every month in the period, performing the following: Ask the user for the total amount deposited into the account during that month. Do not accept negative numbers. This amount should be added to the balance. Ask the user for the...

Question