Suppose you have a k5000 bank deposits. The interest rate is 6% compounded quarterly for 1 year. What is the effective annual interest rate (EAR)?
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Suppose you have a k5000 bank deposits. The interest rate is 6% compounded quarterly for 1 year. What is the effective annual interest rate (EAR)?
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- You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?1. You deposit NOK 250,000 in a savings account. The bank offers 0.25% nominal annual interest rate. How long do you have to leave the money in the account before you have NOK 260,000 in the account? a) At quarterly interest? b) By continuous interest? c) What must the interest rate be if you want to reach the savings target of 10 years by annual return?
- If you deposit OMR 12500 in your account in a bank. Suppose the bank pays 8.25% compound interest monthly. Calculate future value of your money in 17 years.If you deposit OMR 8500 in your account in a bank. Suppose the bank pays 1.15% compound interest half yearly. Calculate future value of your money in 9 years.Suppose you put $200 into a bank account at the annual interest rate of 7%. *Round your answer to the nearest dollar. How much money will this deposit be worth in one year?
- Suppose that a person deposits $500 in a savings account at the end of each year, starting now, for the next 12 years. If the bank pays 8% per year, compounded annually, how much money will accumulate by the end of the 12-year period? Repeat Problem for an interest rate of 6.25% per year, compounded annually?Interest rates are 10%. Suppose you deposit the PV (present value) of a 7 year, $5000 annuity in the bank today, and then withdraw $5000 at the end of each year. What is the balance in your account immediately after the second withdrawal?If you deposit $100 in a savings account at the end of each month for 2 years, the balance will be a function f (r) of the interest rate, r%. At 7% interest (compounded monthly), f (7) = 2568.10 and f (7) = 25.06. Approximately how much additional money would you earn if the bank paid 7 1/2 % interest?
- Suppose that you are about to borrow $10,000 from a bank. Suppose you will be repaying using end-of-year annual payments. What will be your annual uniform payment over 8 years with 10% nominal interest compounded monthly? What will be your annual uniform payment over 7 years with 10% nominal interest compounded continuously?You plan to deposit S500 in a bank account now and S400 at the end of the year. If the account earns 4% interest per year, what will the balance be in theaccount right after you make the second deposit?Suppose you need to have $57,942.00 in an account 25.00 years from today and that the account pays 11.00%. How much do you have to deposit into the account 5.00 years from today? Suppose you deposit $1,101.00 into an account 7.00 years from today. Exactly 15.00 years from today the account is worth $1,466.00. What was the account's interest rate? Suppose you deposit $1,093.00 into an account 7.00 years from today that earns 12.00%. It will be worth $1,613.00 _____ years from today. Assume the real rate of interest is 2.00% and the inflation rate is 4.00%. What is the value today of receiving 10,528.00 in 15.00 years?