You just deposited $3,500 in a bank account that pays a 4.0% nominal interest rate, compounded...

You just deposited $3,500 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. If you also add another $5,000 to the account one year (4 quarters) from now and another $7,500 to the account two years (8 quarters) from now, how much will be in the account three years (12 quarters) from now?

Expert Solution

$3500 will be in the bank for 12 quarters
$5000 will be in the bank for 8 quarters
$7500 will be in the bank for 4 quarters

Quarterly interest rate = 4/4
= 1%

Value of $3500 after 12 quarters = $3500 * (1+1%)^12
= $3500 * 1.01^12
	= $3500 * 1.1268
	= $3943.89

Value of $5000 after 8 quarters = $5000 * 1.01^8
	= $5000 * 1.0829
	= $5414.28

Value of $7500 after 4 quarters = $7500 * 1.01^4
	= $7500 * 1.0406
	= $7804.53

Total amount in the account after 12 quarters = $3943.89+$5414.28+$7804.53
	= $17162.70

jeff jeffy answered 2 years ago

You just deposited $2,500 in a bank account that pays a 4.0% nominal interest rate, compounded...

You just deposited $2,500 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. If you also add another $5,000 to the account one year (4 quarters) from now and another $7,500 to the account two years (8 quarters) from now, how much will be in the account three years (12 quarters) from now? Group of answer choices $18,563.53 $17,679.55 $16,035.88 $16,837.67 $15,234.08

You just deposited $25,000 in a bank account that pays a 12.0% nominal interest rate, compounded...

You just deposited $25,000 in a bank account that pays a 12.0% nominal interest rate, compounded semi-annually. If you also add another $3,000 to the account each year over the next five years, how much will be in the account five years from now?

"You deposit $32,000 in a savings account that pays a nominal interest rate of 4.2% compounded...

"You deposit $32,000 in a savings account that pays a nominal interest rate of 4.2% compounded monthly. 3 years later, you deposit $14,000. 3 years after the second deposit, you make another deposit in the amount of $9,000. 6 years after the third deposit, half of the accumulated funds are transferred to a fund that pays a nominal interest rate of 6.9% compounded quarterly. How much total will you have in the accounts 4 years after the transfer?" SHOW ALL...

$1000 is deposited into an account at time t=0. The nominal interest rate is 8% compounded...

$1000 is deposited into an account at time t=0. The nominal interest rate is 8% compounded semiannually during the first year. An additional $118.40 is deposited into the account at time t=1 and the fund grows at a force of interest 100 2 t  t  during the second year. 1) Calculate the semiannual effective interest rate during the first year. 2) Calculate the account value at time t=1 before the additional $118.40 deposit. 3) Calculate the total account...

Josh deposited $800 in a savings account at 4.0% interest, compounded monthly. A) how much money...

Josh deposited $800 in a savings account at 4.0% interest, compounded monthly. A) how much money will josh have in his account after 4 years? B) After how many years will josh have $2000 in his account(if he does not withdraw any money)?

Suppose Evan deposited $10,000 into a savings account today. The account pays a nominal annual interest...

Suppose Evan deposited $10,000 into a savings account today. The account pays a nominal annual interest rate of 12%, but interest is compounded quarterly. Assuming that he makes no additional deposits into or withdrawals from the account, what will his ending balance be 10 years from today?

Allied Bank offers a nominal rate of 5.0% interest, compounded quarterly on a savings account. Standard...

Allied Bank offers a nominal rate of 5.0% interest, compounded quarterly on a savings account. Standard Bank offers 6.0% interest compounded annually on a savings account. Which bank will you select to deposit your money?

An amount of $10,000 is deposited into a savings account that pays interest at a rate...

An amount of $10,000 is deposited into a savings account that pays interest at a rate of 7%. If 10 equal annual withdrawals are made from the account starting one year after the money was deposited, how much can be withdrawn so that in the fifth year one would be able to withdraw an additional $1,000 and the account would be depleted after 10 years? Explain verbally in detail and sketch a timeline to illustrate.

You are considering investing in a bank account that pays a nominal annual rate of 7%,

You are considering investing in a bank account that pays a nominal annual rate of 7%, compounded monthly. If you invest $3,000 at the end of each month, how many months will it take for your account to grow to $150,000?An uncle of yours who is about to retire wants to sell some of his stock and buy an annuity that will provide him with income of $50,000 per year for 30 years, beginning a year from today. The going...

Compute the nominal annual rate of interest (compounded monthly) at which $250.00 deposited at the end...

Compute the nominal annual rate of interest (compounded monthly) at which $250.00 deposited at the end of each month for ten years will amount to $30 000.00.

Question