A bank offers all savings accounts 5% interest compounded annually. If one account has a principal of $100 and another has a principal of $1,000, which account will double first? Explain how you arrived at your answer. Answer in complete sentences.
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A bank offers all savings accounts 5% interest compounded annually. If one account has a principal of $100 and another has a principal of $1,000, which account will double first? Explain how you arrived at your answer. Answer in complete sentences.
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- Suppose you borrow from a bank $1,756.06 today (t=0). You agree to pay back $3,637.64 in 4 years (t=4). The interest rate (%) that the bank charge you is closest to ________%. Input your answer without the % sign and round your answer to two decimal places.If a Commercial Bank A offers its savers a 10.3% annual interest rate and pays interest annually, while another Commercial Bank B offers its savers 10% annual interest rate but pays monthly. Which Commercial Bank you would deposit your money, if you intended to keep in the savings account for 5 years. Show all numerical calculations.You plan to deposit $700 in a bank account now and $200 at the end of one year. If the account earns 3% interest per year, what will the balance be in the account right after you make the second deposit? There will be $ in the account right after the second deposit. (Type an integer or a decimal.) w an example .... Get more help. Save Clear all In
- You are shopping around to determine which bank account yields the highest return. You have three choices: 1st - Wesbanco offers an account compounded annually at 7.2% 2nd - PNC offers an account compounded semi-annually at 6.29% 3rd - United offers an account compounded daily at 6.5% You have $2,000 to invest for 1 years. Which account should you choose to have the largest account balance in 1 years? O Wesbanco United PNC Wesbanco will produce $ Number in 1 years. PNC will produce $ Number in 1 years. United will produce $ Number in 1 years. (round dollar values to the nearest cent (two decimal places))Read and analyze each given scenario and provide what is asked. Show your complete solutions. 1. It is now January 1, 20x8. Today you will deposit P100,000 into a savings account that pays 8%. a. If the bank compounds interest annually, how much will you have in your account on January 1, 20x9? b. What will your January 1, 20x9 balance be if the bank uses quarterly compounding? 2. It is now January 1, 2x16, and you will need P100,000 on January 1, 2x20. Your bank compounds interest at an 8% annual rate. How much must you deposit today to have a balance of P100,000 on January 1, 2x20? 3. If you deposited P200,000 in a bank account that pays 6% interest annually, how much will be in your account after five (5) years? 4. What is the present value of a security that will pay P290,000 in 20 years if securities of equal risk pay 5% annually? 5. What is the future value of a 5%, 5-year ordinary annuity that pays P8,000 each year? If this was an annuity due, what would be its…Calculate the final balance on each bank account after making deposits in them with the following terms: A) A bank account that pays 3.5% per yearly period (i.e. the EAR) for the next 3 years in total. If you deposit $1 into a bank account that pays 3.5% per year for 3 years, the amount you will receive after 3 years is $ (Round your answer to five decimal places) B) A bank account that pays 2.3% every 6-month period for the next 3 years in total. If you deposit $1 into a bank account that pays 2.3% every 6 months for 3 years, the amount you will receive after 3 years is $ (Round your answer to five decimal places) C) A bank account that pays 8.0% per 18-month period for the next 3 years in total. If you deposit $1 into a bank account that pays 8.0% every 18 months for 3 years, the amount you will receive after 3 years is $ (Round your answer to five decimal places)
- The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. A. Find how much money there will be in the account after the given number of years. B. Find the interest earned. Click the icon to view some finance formulas. A. The amount of money in the account after 2 years is $. (Round to the nearest hundredth as needed.) B. The amount of interest earned is $. (Round to the nearest hundredth as needed.) Principal $2000 Rate 5% 7 Compounded annually Time 2 yearsA bank features a savings account that has an annual percentage rate of r=5.6% with interest compounded daily. Dylan deposits $2,500 into the account. The account balance can be modeled by the exponential formula S(t)=P(1+rn)nt, where S is the future value, P is the present value, r is the annual percentage rate, n is the number of times each year that the interest is compounded, and t is the time in years. What values should be used for P, r, and n? P= , r= , n= How much money will Dylan have in the account in 10 years? Answer = $ . Round answer to the nearest penny.What is the annual percentage yield (APY) for the savings account? (The APY is the actual or effective annual percentage rate which includes all compounding in the year). APY= %.Which one of the following bank accounts will you choose for a savings account? Bank A: An account that pays 8% nominal interest (APR) with daily (365-day)compounding. Bank B: An account that pays 8% nominal interest (APR) with annual compounding. Bank C: An account that pays 7% nominal interest (APR) with daily (365-day)compounding. Bank D: An account that pays 7% nominal interest (APR) with monthly compounding. Please explain your choice. show in excel for all choice to see calculations What is the effective annual return (EFF) of the account that you picked?
- A bank features a savings account that has an annual percentage rate of R=5.8% with interest compounded quarterly. Holly deposits $6,500 into the account.(A) What value should be used for n if time = 1010 years? (B) How much money will Holly have in the account in 1010 years? C) What is the effective rate for the savings account?A friend asks to borrow $48 from you and return will pay you $51 in one year. If your bank is offering a 6.5% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $48 instead? b. How much money could you borrow today if you pay the bank $51 in one year? c. Should you loan the money to your friend or deposit it in the bank? DSuppose a person has a total credit card debt of $1,375 that has a 12 % yearly interest rate. This person also has a savings account with $2,500 that pays 3 % interest per year. Despite the net loss, the person keeps both. Cakulate how many times the person appreciates the $1 of savings more than $1 of credit card debt if the person relates similarly to both values of percent paid and received. Enter your answer in the box below and round to two decimal places if necessary.