Question
In: Advanced Math
Calculus 2 question. Please explain clearly. A bank account earns 5% interest compounded monthly. Suppose that...
Calculus 2 question. Please explain clearly.
A bank account earns 5% interest compounded monthly. Suppose that $1,000 is initially deposited into the account, but that $10 is withdrawn each month.
a) Show that the amount in the account after n months is An=(1+0.05/12)An-1-10; A0=1000
b) How much money will be in the account after 1year?
c) Suppose that instead of $10, a fixed amount of d dollars is withdrawn each month from the account. Find a value of d such that the amount in the account after each month remains at $1,000
Solutions
Colby Messinger answered 1 year agoRelated Solutions
Crystal invested $10,530 into an account that earns 3.74% interest compounded monthly. How long will it...
Crystal invested $10,530 into an account that earns 3.74%
interest compounded monthly. How long will it take (in years and
days) to accumulate to $17,040. Round up the value of N to
the next higher whole number (e.g. N = 5.31 rounds up to N =
6), similarly days are rounded
up to the next days. If years is a whole
number, you must enter a zero for days for the answer to be marked
as correct. All answer boxes...
1.) If the account earns an interest rate of 24% compounded monthly, find the effective rate...
1.) If the account earns an interest rate of 24%
compounded monthly, find the effective rate of interest:
A. Compounded daily 360 days
B. Compounded daily 365 days
C. Compounded weekly
D. Compounded monthly
E. Compounded quarterly
F. Compounded semi-annually
G. Compounded annually
2.) What is the effective annual interest rate for a
nominal interest rate of 24% compounded continuously?
You have $100,000 in an account that earns 2% APR (Compounded monthly) You want to earn...
You have $100,000 in an account that earns 2% APR (Compounded
monthly)
You want to earn a higher rate of return and therefore are
considering two alternative investments. You will put your $100,000
in one of the two new accounts.
Investment 1 will pay you $860 per month for starting next month
120 months.
Investment 2 will pay you $2,600 per month for starting next month
40 months.
Which account should you choose and how much does it increase your...
You have $100,000 in an account that earns 2% APR (Compounded monthly) You want to earn...
You have $100,000 in an account that earns 2% APR (Compounded
monthly)
You want to earn a higher rate of return and therefore are
considering two alternative investments. You will put your $100,000
in one of the two new accounts.
Investment 1 will pay you $860 per month for starting next month
120 months.
Investment 2 will pay you $2,600 per month for starting next month
40 months.
Which account should you choose and how much does it increase your...
Bank A pays 15% interest, compounded monthly, on its money market account. What is the effective...
Bank A pays 15% interest, compounded monthly, on its money
market account. What is the effective annual rate?
A principal amount P0 is deposited in a bank account earning 3% interest compounded monthly. After...
A principal amount P0 is deposited in a bank account earning 3%
interest compounded monthly. After 20 years there is $1000 in the
account. What was the principal P0?
Suppose you want to buy a house for $300, 000, but you only have
$100,000. You are able to make an investment that pays 7.3% annual
interest. If the interest is compounded continuously, how long will
it take before you can buy your new house?
You are made an offer. You...
1. If your bank quoted a 6% interest rate on your account, which is compounded monthly,...
1. If your bank quoted a 6% interest rate on your account, which
is compounded monthly, which of the following implications is
correct?
a. The semi-annual interest on your account is 3%
b. The monthly interest on your account is 0.5%
c. Your effective annual interest rate on this account is 6%
d. Your effective annual interest rate on this account is below
6%
2. The interest amount of an interest-only loan is ______.
a. repaid in full at the...
1. If you deposit $8,177 in a bank account that pays 7% interest compounded monthly, how...
1. If you deposit $8,177 in a bank account that pays 7% interest
compounded monthly, how much will be in your account after 8 years?
Please round your answer to the second decimal without dollar sign
(e.g. 0.00)
2. If you deposit your money in a bank account that pays 8.66%
interest compounded weakly, what is the effective annual rate
(EAR)? Please round your answer to the fourth decimal (e.g.
0.0000)
3. If you plan to apply for a PhD...
Suppose an investor plans to make monthly deposits into an account that pays 9% interest, compounded...
Suppose an investor plans to make monthly deposits into an
account that pays 9% interest, compounded monthly, so that $100,000
will be in the account immediately after the payment at the end of
Year 10. The first payment will occur at the end of Month 1 (one
month from the present). How much must be deposited monthly?
A.
$517 per month
B.
$9,670 per month
C.
$6,580 per month
D.
$9,67 per month
Bank A offers a savings account with interest rate of 2% compounded quarterly. Bank B offers...
Bank A offers a savings account with interest rate of 2%
compounded quarterly. Bank B offers a savings account with interest
rate of 2.25% compounded semi-annually. Assume customer can deposit
$5,000 and leave it on deposit for 4 years. What would be the final
value for each bank account?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Use the method of reduction of order to find a second independent solution of the given...
- (Annuity payments) Mr. Bills Preston, Esq., purchased a new house for $280,000. He paid $80,000 up...
- When are sellers from online auction sites required to pay income tax? Please provide and discuss...
- A pharmaceutical company has a new drug which relieves headaches. However, there is some indication that...
- Kaizen is a Japanese term for continuous improvement in all aspects of an entity’s performance, at...
- When the following equation is balanced with the smallest integral coefficients, the coefficient of the HCl(g)...
- QCE18-3 How Do Business Processes and Information Systems Relate? Explain how information systems and business processes...
ADVERTISEMENT