An individual invests $2,000 for three years and earns interest at a rate of 2.125%. If...

An individual invests $2,000 for three years and earns interest at a rate of 2.125%. If interest is compounded quarterly, how much will the individual have after three years?

A. $2,127.50

B. $2,131.29

C. $2,130.94

Solutions

Expert Solution

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

An individual invests $2,000 in a one year Certificate of Deposit paying interest at a rate of 1.25%.

An individual invests $2,000 in a one year Certificate of Deposit paying interest at a rate of 1.25%. How much will the individual have after one year?A. $2,000B. $2,250C. $2,025

A deposit of $5,000 earns interest at 4% compounded semi-annually. After three-and-a-half years, the interest rate...

A deposit of $5,000 earns interest at 4% compounded semi-annually. After three-and-a-half years, the interest rate is changed to 4.5% compounded quarterly. How much is the account worth after 7 years? Jan is saving for a new bike that will cost $800. She has $500, which she has invested at 7% compounded semi-annually. How many years will it be (approximately) until she has $800? How long will it take for money to double if it is compounded quarterly at 6%?

Suppose an investor invests $2,000 in a Certificate of Deposit which earns eight percent compounded quarterly....

Suppose an investor invests $2,000 in a Certificate of Deposit which earns eight percent compounded quarterly. What is the value of the CD in five years a.$2,208 b.$2,939 c.$2,800 d.$2,972 e.None of the above 2. Suppose an investor invests $2,000 at the beginning of each year. What will be the value of the investment at the end of ten years if he earns ten percent? $31,875 $35,062 $13, 518 $12,289 $20,000 3. You could gift any number of people _____...

Alpha Company invests $12,000 at an interest rate of 12% for five years. What is the...

Alpha Company invests $12,000 at an interest rate of 12% for five years. What is the difference between simple and compound interests? Assume that in case the interest rate compounds monthly.

Let's say a firm invests $45,000 today for 10 years at an interest rate of 5.6%....

Let's say a firm invests $45,000 today for 10 years at an interest rate of 5.6%. What will be the investment's future value 10 years from now assuming that the interest rate will compound annually? How will your answers change if the interest rate compounds semiannually?

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?

At the end of every year you deposit $2,000 into an account that earns 8% interest...

At the end of every year you deposit $2,000 into an account that earns 8% interest per year. What will be the balance in your account immediately after the 30th deposit?

Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an investment...

Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule.) Required: How much federal tax will she owe? What is her average tax rate? What is her effective tax rate? What is her current marginal tax rate?

Kutter invests $ 368 in a savings account that earns 1.3 % compounded annually. Olivia invests...

Kutter invests $ 368 in a savings account that earns 1.3 % compounded annually. Olivia invests $ 368 in a savings account that earns 7.6 % compounded annually. How much more does Olivia have after 15 years? $___________ (round to the nearest cent)

At the end of every year you deposit $2,000 into an account that earns 7% interest per year.

At the end of every year you deposit $2,000 into an account that earns 7% interest per year. What will be the balance in your account immediately after the 30th deposit?

Subjects