You make a $7,000 deposit to an investment account today. The investment earns 6% p.a compounding...

You make a $7,000 deposit to an investment account today. The investment earns 6% p.a compounding monthly for the first 12 months, then it earns 13%p.a compounding monthly for the next 3 years. At the end of the 4 years the balance in the account is (to the nearest whole dollar; don't use $ sign or commas)

Expert Solution

We use the formula:
A=P(1+r/12)^12n
where
A=future value
P=present value
r=rate of interest
n=time period.

A=7000*(1+0.06/12)^(12*12/12)*(1+0.13/12)^(12*3)

=7000*1.56479235

=10954(Approx)

jeff jeffy answered 2 years ago

You make a $1,000 deposit to an investment account today. The investment earns 5% p.a compounding...

You make a $1,000 deposit to an investment account today. The investment earns 5% p.a compounding monthly for the first 12 months, then it earns 10%p.a compounding monthly for the next 3 years. At the end of the 4 years the balance in the account is (to the nearest whole dollar; don't use $ sign or commas)

Scenario: You make a $2,000 deposit to a retirement account today. The account earns a 7.65%...

Scenario: You make a $2,000 deposit to a retirement account today. The account earns a 7.65% rate of interest (i.e. APR) compounded quarterly. What is the value of the investment in 6 years? Scenario: Suppose you want to take out a $150,000 semi annual loan from a bank. The maximum semi-annual payment you can afford is 7,000. The market interest rates are 7.90 APR. Under these conditions, what would the term of this loan be? (round answer to the nearest...

You plan to make a deposit today to an account that pays 6% compounded annually that...

You plan to make a deposit today to an account that pays 6% compounded annually that will found the following withdrawals with nothing left in the account after the withdrawals, starting at the end of year 4 you plan to make 5 annual withdrawals (withdraw in year 4,5,6,7,8) that will increase by 2% over the previous year's withdrawals. The amount for withdrawals in year 4 will be $2000, what amount do you need to deposit today?

Suppose you deposit $1,062.00 into an account 4.00 years from today that earns 11.00%. It will...

Suppose you deposit $1,062.00 into an account 4.00 years from today that earns 11.00%. It will be worth $1,801.00 _____ years from today.

At the end of every year you deposit $2,000 into an account that earns 6% interest...

At the end of every year you deposit $2,000 into an account that earns 6% interest per year. What will be the balance in your account immediately after the 30th deposit?

If you deposit today $9,719 in an account for 6 years and at the end accumulate...

If you deposit today $9,719 in an account for 6 years and at the end accumulate $10,221, how much compound interest rate (rate of return) you earned on this investment? You will deposit 18,057 at 10% simple interest rate for 6 years, and then move the amount you would receive to an investment account at 10 % compound rate for another 3 years. How much money would you have at the end of the entire period? If you deposit today...

Burt deposits $10,000 into a bank account today. The account earns 5% per annum compounding daily...

Burt deposits $10,000 into a bank account today. The account earns 5% per annum compounding daily for the first 2 years, then 5.5% per annum compounded quarterly thereafter. No further deposits or withdrawals will be made. For this question, assume all months are of equal length (30 days) and ignore leap years. (d) Calculate the account balance 10 years from today.

Burt deposits $10,000 into a bank account today. The account earns 4.5% per annum compounding daily...

Burt deposits $10,000 into a bank account today. The account earns 4.5% per annum compounding daily for the first 4 years, then 3.5% per annum compounded quarterly thereafter. No further deposits or withdrawals will be made. For this question, assume all months are of equal length and ignore leap years. (a) Calculate the account balance six months from today. (b) Calculate the account balance 4 years from today. (c) Calculate the account balance 4.5 years from today. (d) Calculate the...

Burt deposits $10,000 into a bank account today. The account earns 4% per annum compounding daily...

Burt deposits $10,000 into a bank account today. The account earns 4% per annum compounding daily for the first 3 years, then 3.5% per annum compounded quarterly thereafter. No further deposits or withdrawals will be made. For this question, assume all months are of equal length and ignore leap years. (a) Calculate the account balance six months from today. (b) Calculate the account balance 3 years from today. (c) Calculate the account balance 3.5 years from today. (d) Calculate the...

Consider a bank account that pays 6% annually with monthly compounding. You made a $1,000 deposit...

Consider a bank account that pays 6% annually with monthly compounding. You made a $1,000 deposit in this account exactly 20 years (240 months) ago. 1）Find the account's current balance in dollars and cents. 2）how much interest-on-interest have you earned? Express your answer in dollars and cents.

Question