Question
In: Finance
Use technology to compute the balance. a. An account with annual compounding, an APR of 12%,...
Use technology to compute the balance.
a. An account with annual compounding, an APR of 12%, and an initial deposit of $500, after 7 years
An account with annual compounding, an AR of 2%, and an initial deposit of $213, after 539 years.
After 7 years, the balance obtained by investing $500 at a rate of 12% with an annual compounding will be [...]
Solutions
Expert Solution
| a) | |
| Initial deposit | $ 500 |
| APR | 12% |
| Times compounded in a year | 1 |
| Time in years | 7 |
| Amount after 7 years | $1,105.34 |
| b) | |
| Initial deposit | $ 213 |
| APR | 2.0% |
| Times compounded in a year | 1 |
| Time in years | 539 |
| Amount after 539 years | $9,201,787.15 |
Excel formulas:
jeff jeffy answered 2 years agoRelated Solutions
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Follow-up
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Instruction: Type ONLY your numerical answer in the unit of
dollars, NO $ sign, NO comma, and round to one decimal places.
E.g., if your answer is $7,001.56, should type ONLY the number
7001.6, NEITHER 7,001.6, $7001.6,$7,001.6, NOR 7002. Otherwise,
Blackboard will treat it as a wrong answer.
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