erek can deposit $203.00 per month for the next 10 years into an account at Bank...

erek can deposit $203.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 13.00% and compounds interest monthly. Derek can deposit $2,592.00 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? round answer 4 decimal places

Expert Solution

Value after 10 years was $49,539.49

Hence, Interest rate of Bank B is 0.1376

jeff jeffy answered 1 year ago

Derek can deposit $283.00 per month for the next 10 years into an account at Bank...

Derek can deposit $283.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 15.00% and compounds interest monthly. Derek can deposit $2,468.00 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...

Derek can deposit $254.00 per month for the next 10 years into an account at Bank...

Derek can deposit $254.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 13.00% and compounds interest monthly. Derek can deposit $2,488.00 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...

Derek can deposit $294.00 per month for the next 10 years into an account at Bank...

Derek can deposit $294.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 12.00% and compounds interest monthly. Derek can deposit $2,445.00 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...

Derek can deposit $266.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 12.00%

Derek can deposit $266.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 12.00% and compounds interest monthly. Derek can deposit $2,572.00 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...

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...

Anton will deposit $1,000 into a savings account at the beginning of each month for the next 10 years.

Anton will deposit $1,000 into a savings account at the beginning of each month for the next 10 years. In return, he receives a payment of X at the end of each year forever, beginning at the end of the 11th year. Assuming an annual effective rate of discount of 5% for both accounts, determine X.

Lauren plans to deposit $5000 into a bank account at the beginning of next month and...

Lauren plans to deposit $5000 into a bank account at the beginning of next month and $200/month into the same account at the end of that month and at the end of each subsequent month for the next 5 years. If her bank pays interest at the rate of 3%/year compounded monthly, how much will Lauren have in her account at the end of 5 years? (Assume that no withdrawals are made during the 5-year period)

Lauren plans to deposit $9000 into a bank account at the beginning of next month and...

Lauren plans to deposit $9000 into a bank account at the beginning of next month and $150/month into the same account at the end of that month and at the end of each subsequent month for the next 4 years. If her bank pays interest at a rate of 5%/year compounded monthly, how much will Lauren have in her account at the end of 4 years? (Assume she makes no withdrawals during the 4-year period. Round your answer to the...

Let's now say we have $50 in a bank account and we deposit an additional $10 per month for 5 years.

Let's now say we have $50 in a bank account and we deposit an additional $10 per month for 5 years. The annual interest rate is 10%, compounded monthly. How much will we have in the account after 5 years rounded to the nearest dollar? A) $887 B) $692 C) $857 D) $665

If a deposit of $2,500 per month was made for the next 3 years, determine the future worth of the deposit at an interest rate of 10% per year, compounded continuously?

Question