Suppose you have $5700 deposited at 5.55% compounded quarterly. About long will it take your balance...

Suppose you have $5700 deposited at 5.55% compounded quarterly. About long will it take your balance to increase to $7600?

Expert Solution

jeff jeffy answered 2 years ago

Quarterly compounding implies that interest is compounded times per year. (2,12,3,6,4) You have deposited $42,000 into...

Quarterly compounding implies that interest is compounded times per year. (2,12,3,6,4) You have deposited $42,000 into an account that will earn an interest rate of 8% compounded semiannually. How much will you have in this account at the end of seven years? $50,911.29 $72,730.41 $58,184.33 $87,276.49 $58,184.33 $87,276.49

How long will it take 1,000 to amount to 1,346.00 ifinvested in 6% compounded quarterly?

How long will it take 1,000 to amount to 1,346.00 if invested in 6% compounded quarterly?

Ted deposited $1750 in an RRSP on March 1, 2014, at 3% compounded quarterly. Subsequently the...

Ted deposited $1750 in an RRSP on March 1, 2014, at 3% compounded quarterly. Subsequently the interest rate was changed to 4% compounded monthly on September 1, 2016, and to 4.5% compounded semi-annually on June 1, 2018. What was the value of the RRSP deposit on December 1, 2020, if no further changes in interest were made?

How long will it take an amount to double if it is deposited into an account...

How long will it take an amount to double if it is deposited into an account which pays 3.8% interest compounded continuously? Use a 360 day year and give the answer to the nearest day. Please show work. I am willing to rate you well if you give in-depth detail as how to solve the problem. Thanks!

What lump sum deposited today at 12% compounded quarterly for 10 years will yield the same...

What lump sum deposited today at 12% compounded quarterly for 10 years will yield the same final amount as deposits of $3000 at the end of each 6-month period for 10 years at 10% compounded semiannually? The value of the lump sum is $___

James Henderson deposited $19,000 in a money market certificate that provides interest of 8% compounded quarterly...

James Henderson deposited $19,000 in a money market certificate that provides interest of 8% compounded quarterly if the amount is maintained for 3 years. How much will Cindy Henry have at the end of 3 years? (Round factor values to 5 decimal places, e.g. 1.25124. Round answers to the nearest whole dollar, e.g. 5,250.)

3.) You have a loan for $20,000 on which you are charged 6% compounded quarterly. What...

3.) You have a loan for $20,000 on which you are charged 6% compounded quarterly. What payment amount at the end of every six months would reduce the loan to $15,000 after two years?

You borrowed $700 at 5% compounded quarterly. Your payments are $150 at the end of each...

You borrowed $700 at 5% compounded quarterly. Your payments are $150 at the end of each year. How many years will you make payments on the loan? (Hint: compounding frequency is different from payment frequency; we know that r and t should be matched; compounding effect? Effective interest rate?)

5. You have a bank loan at 6.75%, compounded monthly with quarterly payments. What is the...

5. You have a bank loan at 6.75%, compounded monthly with quarterly payments. What is the effective interest rate per payment period? 6. You lent $500 to your friend at 10% compounded every 2 months. You have asked her to pay the money back at the end of one year and to make an interest payment every six months (one at the 6 month mark and one at the end). What is the effective interest rate per payment period? 7....

Suppose, you invest $10,000 today in a fund that pays 5% annual interest compounded quarterly. How...

Suppose, you invest $10,000 today in a fund that pays 5% annual interest compounded quarterly. How many years will it take for the fund to double the investment?

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