Which do you prefer: a bank account that pays 5.1% per year (EAR) for three years...

Which do you prefer: a bank account that pays 5.1% per year (EAR) for three years or

a. An account that pays 2.8% every six months for three years?

b. An account that pays 8.3% every 18 months for three years?

c, An account that pays .67% every per months for three years?

(Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.)

If you deposit $1 into a bank account that pays 5.1% per year for three years: The amount you will receive after three years is

$nothing. (Round to five decimal places.)

Solutions

Expert Solution

Calculations-

Please upvote if the ans is helpful.In case of doubt,do comment.Thanks.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Which do you prefer: a bank account that pays 5.1 % per year (EAR) for three...

Which do you prefer: a bank account that pays 5.1 % per year (EAR) for three years or A. An account that pays 2.8 % every six months for three years? B. An account that pays 6.8 % every 18 months for three years? C. An account that pays 0.65 % per month for three years? (Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than...

Which do you prefer: a bank account that pays 4.8% per year (EAR) for three years...

Which do you prefer: a bank account that pays 4.8% per year (EAR) for three years or a. An account that pays 2.6% every six months for three years? b. An account that pays 7.4% every 18 months for three years? c. An account that pays 0.41% per month for three years? (Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.)

Which do you prefer: a bank account that pays 6 %per year (EAR) for three years...

Which do you prefer: a bank account that pays 6 %per year (EAR) for three years or a. An account that pays 3 % every six months for three years? b. An account that pays 9 % every 18 months for three years? c. An account that pays 0.6 % per month for three years? a. An account that pays 3 % every six months for three years? If you deposit $1 into a bank account that pays 6 %...

Which do you prefer, a bank account that pays 10% per year (EAR) for three years...

Which do you prefer, a bank account that pays 10% per year (EAR) for three years or a. An account that pays 5% every six months for three years b. B. an account that pays 15% every 18 months for three years? c. An account that pays 1% per month for three years? If you deposit $1 into a bank account that pays 10% per year for three years, you will have $____ Therefore you would prefer _______________ If the...

which do you prefer: a bank account that pays 5.8% per year (EAR) for three years...

which do you prefer: a bank account that pays 5.8% per year (EAR) for three years or (a) An account that pays 2.7% every six months for three years? (b) An account that pays 7.2% every 18 months for three years (c) An account that pays 0.49% per month for three years

Which do you? prefer: a bank account that pays 4.8 % per year? (EAR) for three...

Which do you? prefer: a bank account that pays 4.8 % per year? (EAR) for three years or a. An account that pays 2.6 % every six months for three? years? b. An account that pays 6.8 % every 18 months for three? years? c. An account that pays 0.58 % per month for three? years?

Which do you prefer: a bank account that pays 5.2 % per year (EAR) for three...

Which do you prefer: a bank account that pays 5.2 % per year (EAR) for three years or a. An account that pays 2.8 % every six months for three years? b. An account that pays 7.5 % every 18 months for three years? c. An account that pays 0.26 % per month for three years? (Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six...

13.Suppose you deposit $5,000 into your bank account today. If the bank pays 3.75percent per year,...

13.Suppose you deposit $5,000 into your bank account today. If the bank pays 3.75percent per year, then which of the following statements is (are) correct? (x)$7,825.14is in your account after 12years if interest is compounded quarterly but only $7,777.27if the interest is compounded annually.(y)You will earn an additional $31.69of interest in your account after 12years if interest is compounded semi-annually instead of annually, but $27.10less interest if interest is compounded semi-annually instead of monthly.(z)Although compounding daily instead of weekly will...

Erica has her savings in a bank account that pays 4.0% interest per year. She is...

Erica has her savings in a bank account that pays 4.0% interest per year. She is considering buying stock in a pharmaceuticals company that is developing a cure for cellulite. Her research indicates that she could earn 45% in one year if the cure is successful or lose 65% in one year if it is not. At what probability of success would the pharmaceuticals stock be the better choice? (Round your answer to two decimal places.)

You deposit $3800 in an account with an annual interest of 5.1% for 10 years the...

You deposit $3800 in an account with an annual interest of 5.1% for 10 years the amount of money you’ll have at the end of the 10 years is _______ (type an integer or a decimal)

Subjects