Question
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(Compound interest with non-annual periods) You just received a bonus of $2000. a. Calculate the future...
(Compound interest with non-annual periods) You just received a bonus of $2000. a. Calculate the future value of $2000, given that it will be held in the bank for 10 years and earn an annual interest rate of 4 percent. b. Recalculate part (a) using a compounding period that is (1) semiannual and (2) bimonthly. c. Recalculate parts (a) and (b) using an annual interest rate of 8 percent. d. Recalculate part (a) using a time horizon of 20 years at an annual interest rate of 4 percent. e. What conclusions can you draw when you compare the answers in parts (c) and (d) with the answers in parts (a) and (b)? a. What is the future value of $2000 in a bank account for 10 years at an annual interest rate of 4 percent?
Solutions
jeff jeffy answered 11 months agoRelated Solutions
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(Related to Checkpoint 5.2) (Compound interest with non-annual periods) You just received a bonus of $1,000....
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3
percent.
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6 percent.
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c. Recalculate parts (a) and (b) using an annual interest
rate of 12 percent.
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(Compound interest
with non-annual
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Account Holder
Amount Deposited
Annual Interest Rate
Compounding Periods Per Year (M)
Compounding Periods (Years)
Ted Logan
$1,100
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6
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95,000
12
6
3
Teena Elliott
9,000
12
1
5
Wade Robinson
120,000
8
2
4
Eunice Chang
28,000
18
3
5
Kelli Craven
16,000
10
12
5
PLEASE round...
(Compound interest with non-annual periods) Calculate the amount of money that will be in each of...
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amount of money that will be in each of the following accounts at
the end of the given deposit period:
Account Holder
Amount Deposited
Annual Interest Rate
Compounding Periods Per Year (M)
Compounding Periods (Years)
Theodore Logan
1,000
16%
1
5
Vernell Colles
94,000
10%
2
3
Tina Elliot
7,000
8%
3
6
Wayne Robertson
120,000
8%
4
3
Eunice Chung
29,000
18%
6
4
Kelly Cravens
17,000
10%
12
5
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amount of money that will be in each of the following accounts at
the end of the given deposit period: Account Holder -Amount
Deposited- Annual Interest Rate- Compounding Periods Per Year (M)-
Compounding Periods (Years) Theodore Logan III $ 1,000 12 % 1- 6
Vernell Coles 94,000 8- 2 -2 Tina Elliot 9,000 10- 4 -4 Wayne
Robinson 120,000 10- 12- 3 Eunice Chung 28,000 18- 3-4 Kelly
Cravens 14,000 12- 6= 3...
(Compound interest with non-annual periods) Calculate the amount of money that will be in each of...
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amount of money that will be in each of the following accounts at
the end of the given deposit period: Account Holder Amount
Deposited Annual Interest Rate Compounding Periods Per Year (M)
Compounding Periods (Years) Theodore Logan III $ 1 comma 000 18
% 4 10 Vernell Coles 96 comma 000 8 2 3 Tina Elliot 9 comma 000 10
3 4 Wayne Robinson 119 comma 000 10 12 5 Eunice Chung 30...
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