you invest $2500 at an annual interest rate of 7%. what will be the value of...

you invest $2500 at an annual interest rate of 7%. what will be the value of your investment after 5 years if the interest rate is i/ compounded ii/ compounded monthly and compounded continuously

Expert Solution

Value of investment after 5 years:

If compounded annually= $ 3,506.38

If compounded quarterly= $ 3,536.95

If compounded monthly= $ 3,544.06

If compounded continuously= $ 3,547.67

Calculations as below:

jeff jeffy answered 2 years ago

If you invest $7,000 into a savings account at an annual interest rate of 8% (APR),...

If you invest $7,000 into a savings account at an annual interest rate of 8% (APR), compounded semi-annually, how much will you have in the savings account after 11 years? Enter your response below (rounded to 2 decimal places).

If you invest $1,000 into a savings account at an annual interest rate of 3% (APR),...

If you invest $1,000 into a savings account at an annual interest rate of 3% (APR), compounded semi-annually, how much will you have in the savings account after 14 years?

You invest $7,000 into a savings account that pays an annual interest rate of 12.00%.

You invest $7,000 into a savings account that pays an annual interest rate of 12.00%. How much would you have in your account after 12 years?A.$20,549B.$24,010C.$27,272D.$30,343E.$33,231F.$35,942G.$38,483H.$40,861

Interest Rate Parity (invest here, or invest there) China investment rate for 1 year = 7%...

Interest Rate Parity (invest here, or invest there) China investment rate for 1 year = 7% Japan investment rate for 1 year = 1% Spot quote = 16.10 -11 CNYJPY (6 character coding, NOT fraction) 1 year forward quote = 15.40 02 CNYJPY Use the data above to determine if covered interest arbitrage is possible. Basically, you’ll do 4 math problems. Should China invest at home, or convert and invest in Japan? Should Japan invest at home, or convert and...

You invest $12,000 now and get $14,000 back in 7 years. (A) What nominal interest rate...

You invest $12,000 now and get $14,000 back in 7 years. (A) What nominal interest rate convertible every four months did you earn? (B) What nominal discount rate compounded semi-annually did you earn? (C) What annual effective rate of discount did you earn?

If you invest $3,130.35 in an account earning an annual interest rate of 2.33% compounded quarterly,...

If you invest $3,130.35 in an account earning an annual interest rate of 2.33% compounded quarterly, how much will be in your account after 2 years? After 11 years?

13.) You invest $5500 in a bond that pays an annual compound interest rate of 6.75%....

13.) You invest $5500 in a bond that pays an annual compound interest rate of 6.75%. How many years will it take for this bond to be worth triple (3 times the initial value)? Show your equation, substitution, all algebra work, and correct answer? Show work

You will deposit $9000 into an account with an annual interest rate of 7% compounded monthly,...

You will deposit $9000 into an account with an annual interest rate of 7% compounded monthly, leave the account untouched for 18 years, and then withdraw equal amounts at the end of each month for the following 9 years, ending with a balance of $9000. What will your monthly withdrawals be?

At an interest rate of 7%, what must be the present value of $10,000 due in...

At an interest rate of 7%, what must be the present value of $10,000 due in 8 months?

What annual compound interest rate is required for an investment to grow by 32% in 7...

What annual compound interest rate is required for an investment to grow by 32% in 7 years if interest is compounded 348 times per year?

Question