A bank features a savings account that has an annual percentage rate of r = 5.2% with interest compounded semi-annually. Aurora deposits $10,000 into the account. The account balance can be modeled by the exponential formula S(t)= 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. (A) What values should be used for P, r, and n? P= = = P(1 + 7)", V where S is the n= (B) How much money will Aurora have in the account in 9 years? Answer S Round answer to the nearest penny. (C) 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 Round answer to 3 decimal places.

A bank features a savings account that has an annual percentage rate of r = 5.2% with interest compounded semi-annually. Aurora deposits $10,000 into the account. The account balance can be modeled by the exponential formula S(t)= 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. (A) What values should be used for P, r, and n? P= = = P(1 + 7)", V where S is the n= (B) How much money will Aurora have in the account in 9 years? Answer S Round answer to the nearest penny. (C) 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 Round answer to 3 decimal places.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A bank features a savings account that has an annual percentage rate of r=3.1r=3.1% with interest compounded quarterly. Breanna deposits $6,500 into the account. The account balance can be modeled by the exponential formula S(t)=P(1+rn)ntS(t)=P(1+rn)nt, where SS is the future value, PP is the present value, rr is the annual percentage rate written as a decimal, nn is the number of times each year that the interest is compounded, and tt is the time in years. (A) What values should be used for PP, r, and nn? P=P= , r=r= , n=n= (B) How much money will Breanna have in the account in 88 years? Answer = $ . Round answer to the nearest penny.
A bank features a savings account that has an annual percentage rate of r=3.4% with interest compounded weekly. Alfonso deposits $11,500 into the account. The account balance can be modeled by the exponential formula S(t)=P(1+r/n)^nt, where S is the future value, P is the present value, rr is the annual percentage rate, nn is the number of times each year that the interest is compounded, and tt is the time in years. What values should be used for P, r, and n?P= , r= , n= How much money will Alfonso have in the account in 10 years?Answer = $ .Round answer to the nearest penny. What is the effective annual rate for the savings account?effective rate = %.Round answer to 3 decimal places.
A bank features a savings account that has an annual percentage rate of r = 3.9% with interest compounded quarterly. Landon deposits $7,500 into the account. kt The account balance can be modeled by the exponential formula A(t) = a(1+ where A is account value after t years, a is the principal (starting amount), r is the annual percentage rate, k is the number of times each year that the interest is compounded. (A) What values should be used for a, r, and k? a = r = k = (B) How much money will Landon have in the account in 7 years? Answer = $ Round answer to the nearest penny. (C) 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 = %. Round answer to 3 decimal places. Get help: Video MacBook Pro
A bank features a savings account that has an annual percentage rate of r = 5.1% with interest compounded quarterly. Kimberly deposits $12,000 into the account. The account balance can be modeled by the exponential formula A(t) = a(1+ r kt where A is account value after t years , a is the principal (starting amount), r is the annual percentage rate, k is the number of times each year that the interest is compounded. (A) What values should be used for a, r, and k? k = = D (B) How much money will Kimberly have in the account in 10 years? Amount = $ Round answer to the nearest penny. (C) 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). АРY Round answer to 3 decimal places.
A bank features a savings account that has an annual percentage rate of r = 3.4% with interest compounded quarterly. Linda deposits $7,000 into the account. The account balance can be modeled by the exponential kt formula A(t) = a(1+)" where A is account value k after t years , a is the principal (starting amount), r is the annual percentage rate, k is the number of times each year that the interest is compounded. (A) What values should be used for a, r, and k? а — r = k (B) How much money will Linda have in the account in 7 years? Amount = $ Round answer to the nearest penny. (C) 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 Round answer to 3 decimal places.
= A bank features a savings account that has an annual percentage rate of r interest compounded quarterly. Tatiana deposits $9,000 into the account. The account balance can be modeled by the exponential formula A(t) = a (1 + 7-)kt, where A is account value after t years, a is the principal (starting amount), r is the annual percentage rate, k is the number of times each year that the interest is compounded. (A) What values should be used for a, r, and k? a = r = 5.6% with k = (B) How much money will Tatiana have in the account in 7 years? Answer = $ 7. Round answer to the nearest penny. APY = = %. Round answer to 3 decimal places. (C) 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).
When $8,600 is invested in a savings account paying simple interest for the year, the interest, i in dollars, can be obtained from the equation i=8,600r, where r is the rate of interest in decimal form. Graph i=8,600r, for r up to and including a rate of 16%. If the rate is 7%, how much interest is earned? OA. $6,020 OB. $602 OC. $586 OD. $622
The value of a bank account collecting interest which is continuously compounded is modeled by the equation: A = Pet where: A is the value of the account at time t P, or the principal, is the value of the initial investment t is time (measured in years) r is the interest rate (written as a decimal) 1. Suppose that $5000 is put into an account with an interest rate of 8% compounded continuously. a) How much will the account be worth after 3 years (exact value) ? b) How much will the account be worth after 3 years (rounded to the nearest cent) ? c) How many years will it take for the value of the account to double? In an exponential model for population growth, the size of a population at time t is rt described by the equation: N(t) = Net where: N is the initial population or the population at t=0 r is the percentage growth rate t = time and can be measured in different units depending on the problem. Note: You don't have to use e and r. It is often possible to find an equivalent form…
You initially invest $400 in a savings account that pays a yearly interest rate of 3%. (a) Write a formula for an exponential function giving the balance in your account as a function of the time since your initial investment. (Let B be the account balance in dollars and t be the number of years since the initial investment.) 8(t)= dollars (b) What monthly interest rate best represents this account? Round your answer to three decimal places. % (c) Calculate the decade growth factor. (Round your answer to two decimal places.) (d) Use the formula you found in part (a) to determine how long it will take for the account to reach $536. (Round your answer to the nearest whole number.) yr Explain how this is consistent with your answer to part (c), At the end of one decade, there will be $ where the account reaches $536 at the end of This --Select-- o the answer found above years,
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?
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 years
A bank quotes you a nominal interest rate of 12%, compounded monthly, on a savings account. What is the effective annual rate? %

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