2. Derek can deposit $293.00 per month for the next 10 years into an account at...

2. Derek can deposit $293.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 14.00% and compounds interest monthly. Derek can deposit $2,462.00 per year for the next 10 years into an account at Bank B. The first deposit will be made next year. Bank B compounds interest annually. What rate must Bank B pay for Derek to have the same amount in both accounts after 10 years?

Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434))

3. Suppose you deposit $1,027.00 into an account 4.00 years from today that earns 12.00%. It will be worth $1,802.00 _____ years from today.

Answer format: Number: Round to: 2 decimal places.

Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 1 year ago

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