4. Suppose our savings account ($937.33) pays us compound interest with monthly compounding. (Interest rate is 8.24%) A. How much savings will we have in 2 years? b. How much total interest did we earn? c. How much does our money grow by each year as a percent? d. What is the APY (annual percentage yield)?
4. Suppose our savings account ($937.33) pays us compound interest with monthly compounding. (Interest rate is 8.24%) A. How much savings will we have in 2 years? b. How much total interest did we earn? c. How much does our money grow by each year as a percent? d. What is the APY (annual percentage yield)?
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter4: Managing Your Cash And Savings
Section: Chapter Questions
Problem 7FPE: Calculating interest earned and future value of savings account. If you put 6,000 in a savings...
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4. Suppose our savings account ($937.33) pays
us compound interest with monthly
compounding. (Interest rate is 8.24%)
A. How much savings will we have in 2 years?
b. How much total interest did we earn?
c. How much does our money grow by each
year as a percent?
d. What is the APY (annual percentage yield)?
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