Two accounts are opened at the same time. You deposit 1450 dollars into the first account,...

Two accounts are opened at the same time. You deposit 1450 dollars into the first account, which earns interest at an effective rate of 6.3 percent. At the same time, you deposit 260 dollars into the second account, which earns an effective rate of 11.8 percent. How long will it take for the balance in the first account to be exactly twice the balance in the second account? (Assume compound interest at all times.)

Expert Solution

Year	Account 1 Balance [Previous Years Balance*(1.063)]	Account 2 Balance [Previous Years Balance*(1.118)]	Account 1 Balance/ Account 2 Balance
1	1450	260	5.576923077
2	1541.35	290.68	5.302566396
3	1638.45505	324.98024	5.04170669
4	1741.677718	363.3279083	4.793679974
5	1851.403414	406.2006015	4.557854931
6	1968.04183	454.1322725	4.333631298
7	2092.028465	507.7198806	4.120438345
8	2223.826258	567.6308265	3.917733418
9	2363.927312	634.6112641	3.725000557
10	2512.854733	709.4953932	3.541749188
11	2671.164581	793.2158496	3.367512868
12	2839.44795	886.8153199	3.201848103
13	3018.333171	991.4595276	3.044333214
14	3208.48816	1108.451752	2.894567269
15	3410.622914	1239.249059	2.752169058
16	3625.492158	1385.480448	2.616776126
17	3853.898164	1548.96714	2.488043848
18	4096.693748	1731.745263	2.365644553
19	4354.785454	1936.091204	2.24926669
20	4629.136938	2164.549966	2.138614036
21	4920.772565	2419.966862	2.033404937
22	5230.781237	2705.522952	1.9333716

Therefore, It will take 21 years (approximately)

jeff jeffy answered 1 year ago

Assume you deposit $400 into an account today and another $600 into the same account three...

Assume you deposit $400 into an account today and another $600 into the same account three years from now, how much will you have in your account exactly ten years from today? The account pays interest of 7% p.a. PLEASE SHOW WORK!

If you deposit $12,123 dollars into a savings account, what interest would you need to be...

If you deposit $12,123 dollars into a savings account, what interest would you need to be earning to have $16,642 dollars in the same account 4 years later? Answer as a percent and to the nearest hundredth of a percent as in xx.xx % and enter without the percent sign.

if you deposit 10,697 dollars into a savings account, what interest would you need to be...

if you deposit 10,697 dollars into a savings account, what interest would you need to be earning to have 19,962 dollars in the same account 4 years later? answer as a percent to the nearest hundredth of a percent as in xx.xx %

You deposit today $3100 dollars in an account that pays 4.8 percent per year. For the...

You deposit today $3100 dollars in an account that pays 4.8 percent per year. For the next few years you will keep making deposits 7.1 percent larger than the previous one. What will be the balance on the account after 15 deposits. I feel like I am missing the annuity to solve this problem, but I could be wrong.

June 1 The owner opened a bank account for the business with a deposit of $35,000....

June 1 The owner opened a bank account for the business with a deposit of $35,000. This is capital provided by him. 1 Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $35,000 and computer equipment for the shop from Computer Wizards for $5,000. These were paid for with a loan of $36,000 from the bank and cheque for $4,000 from the business bank account. The bank loan is repayable over 4 years. 2 Paid $4,680...

An investor has the possibility to deposit $500 in one of two potential bank accounts. Account...

An investor has the possibility to deposit $500 in one of two potential bank accounts. Account A offers an interest rate of 5% p.a. compounded semi-annually whilst Account B offers an interest rate of 4.9% p.a. compounded quarterly. Which account will yield the higherfuture value?

You opened an account and deposited X Dollars on January 1, 2002 in National City Bank....

You opened an account and deposited X Dollars on January 1, 2002 in National City Bank. Any balance in the account will earn 5% per year. You withdrew $500 on January 1, 2006 and $500 on January 1, 2008. You closed out this account on January 1, 2011 and received $700. How much did you initially deposit (X) in National City at the time you opened the account?

You opened an account and deposited X Dollars on January 1, 2012 in 53 Bank. Any...

You opened an account and deposited X Dollars on January 1, 2012 in 53 Bank. Any balance in the account will earn 5% per year. You withdrew $500 on January 1, 2015. You plan on closing out this account on January 1, 2019 and receive $1,000. How much did you initially deposit (X) in the bank at the time you opened the account?

You opened a brokerage account a year ago. At that time, you bought $10,000 worth of...

You opened a brokerage account a year ago. At that time, you bought $10,000 worth of shares of XYZ stock on margin - you used $5,000 of your own cash and borrowed $5,000 from the brokerage Örm. (a) Right now, XYZ stock is up 6% from a year ago and you decide to get out of your XYZ holdings. Assume the brokerage Örm charges 4% interest on its margin loans, Compute your investmentís holding period return. (b) Would you have...

A bank account currently has a balance of $7,400 dollars. If theinitial deposit was made...

A bank account currently has a balance of $7,400 dollars. If the initial deposit was made four years ago, and the interest rate is 5% APR compounded monthly, what was the initial deposit?(Round to the nearest cent and do not enter the dollar sign)

Question