You have $600 in an account which pays 4.5 % compounded annually. How many additional dollars...

You have $600 in an account which pays 4.5 % compounded annually. How many additional dollars of interest would you earn over 4 years if you moved the money to an account earning 6.6 %?

How many additional dollars of interest would you earn over 4 years from the account that pays 6.6 %?

$___ (Round to the nearest cent.)

Andy promises to pay Opie $7,000 when Opie graduates from Mayberry University in 10 years. How much must Andy deposit today to make good on his promise, if he can earn 5 % on his investments?

How much must Andy deposit today to make good on his promise?

$ ___(Round to the nearest cent.)

Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 1 day ago

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