Question
In: Finance
Currently, I have $2,500 in my bank account that pays 6% APR with monthly compounding. In...
Currently, I have $2,500 in my bank account that pays 6% APR with monthly compounding. In order to have $12,000 in this account in 5 years, how much money should I add to this account each month starting from next month?
Solutions
Expert Solution
Calculations-
As no method was mentioned I have solved the problem using excel function.
Please upvote if the answer is helpful.In case of doubt,do comment.Thanks.
jeff jeffy answered 1 year agoRelated Solutions
Consider a bank account that pays 6% annually with monthly compounding. You made a $1,000 deposit...
Consider a bank
account that pays 6% annually with monthly compounding. You made a
$1,000 deposit in this account exactly 20 years (240 months)
ago.
1）Find the account's
current balance in dollars and cents.
2）how much
interest-on-interest have you earned? Express your answer in
dollars and cents.
I have three investment alternatives: The first one pays 3.6%APR with monthly compounding, the second...
I have three investment alternatives: The first one pays 3.6%
APR with monthly compounding, the second one pays 3.5% APR with
weekly compounding, and the third one pays 3.7% APR with quarterly
compounding. What is the effective annual rate for each one and
which one should I choose? What would be your second choice? Rank
them.
Suppose you deposited $50,000 in a bank account that pays 8.25% with monthly compounding. How much...
Suppose you deposited $50,000 in a bank account that pays 8.25%
with monthly compounding. How much would be in the account after 7
months?
Show all your work
Suppose you deposited $50,000 in a bank account that pays 8.25% with monthly compounding. How much...
Suppose you deposited $50,000 in a bank account that pays 8.25%
with monthly compounding. How much would be in the account after 7
months?
I have some euros in my bank account (Currently: euro = $1.50). I also bought a...
I have some euros in my bank account (Currently: euro = $1.50).
I also bought a put option on euro (X=$1.50, Premium=$0.02). a.
Draw the combined graph. b. What is the name of this strategy? What
is the objective with this strategy? c. How many break even points
are there? What is (are) the break even point(s)? d. If
ST=$1.35/euro just before expiration, what is my profit? e. If
ST=$1.60/euro just before expiration, what is my profit?
First Bank of Belmont offers a savings account with an APR of 5% with daily compounding....
First Bank of Belmont offers a savings account with an APR of 5%
with daily compounding. United Charlotte Bank offers a savings
account with an APR of 5.1% with monthly compounding. Which bank
would you prefer to use for your savings? Explain why (Use numbers!
Be sure to explain why you prefer one number to the other
number).
Oppenheimer Bank is offering a 30-year mortgage with an APR of 5.05% based on monthly compounding....
Oppenheimer Bank is offering a 30-year mortgage with an APR of
5.05% based on monthly compounding. With this mortgage your monthly
payments would be $1,972 per month. In addition, Oppenheimer Bank
offers you the following deal: Instead of making the monthly
payment of $1,972 every month, you can make half the payment every
two weeks (so that you will make 52/2=26 payments per year).
With this plan, how long will it take to pay off the mortgage
if the EAR...
Oppenheimer Bank is offering a 30-year mortgage with an APR of 5.16% based on monthly compounding.
Oppenheimer Bank is offering a 30-year mortgage with an APR of
5.16% based on monthly compounding. With this mortgage your monthly
payments would be $2,032 per month. In addition, Oppenheimer Bank
offers you the following deal: Instead of making the monthly
payment of $2,032 every month, you can make half the payment every
two weeks (so that you will make 52/2=26 payments per year). With
this plan, how long will it take to pay off the mortgage if the
EAR...
Oppenheimer Bank is offering a 30-year mortgage with an APR of 5.13% based on monthly compounding....
Oppenheimer Bank is offering a
30-year
mortgage with an APR of
5.13%
based on monthly compounding. With this mortgage your monthly
payments would be
$2,032
per month. In addition, Oppenheimer Bank offers you the
following deal: Instead of making the monthly payment of
$2,032
every month, you can make half the payment every two weeks (so
that you will make
52/2=26
payments per year). With this plan, how long will it take to
pay off the mortgage if the EAR...
Oppenheimer Bank is offering a 30-year mortgage with an APR of 5.01% based on monthly compounding....
Oppenheimer Bank is offering a
30-year
mortgage with an APR of
5.01%
based on monthly compounding. With this mortgage your monthly
payments would be
$2,048
per month. In addition, Oppenheimer Bank offers you the
following deal: Instead of making the monthly payment of
$2,048
every month, you can make half the payment every two weeks (so
that you will make
52/2=26
payments per year). With this plan, how long will it take to
pay off the mortgage if the EAR...
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