A saver places GHc1,000 in a certificate of deposit that matures after 20 years and that each year pays 4 percent interest, which is compounded annually until the certificate matures. How much interest will the saver earn if the interest is left to accumulate? How much interest will the saver earn if the interest is withdrawn each year?

A saver places GHc1,000 in a certificate of deposit that matures after 20 years and that each year pays 4 percent interest, which is compounded annually until the certificate matures. How much interest will the saver earn if the interest is left to accumulate? How much interest will the saver earn if the interest is withdrawn each year?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 12E

See similar textbooks

Similar questions

You invest $1,000 in a certificate of deposit that matures after 10 yaers and pays 5 percent interest, which is compounded annually until the certificate matures A. How much interest will the saver earn if the interest is left to accumulate? B. How much interest will the saver earn if the interest is withdrawn each year? C. Why are the answers to a and b different?
You invest $2,000 in a certificate of deposit that matures after nine years and pays 5 percent interest, which is compounded annually until the certificate matures. Use Appendix A to answer the questions. Round your answers to the nearest dollar. How much interest will you earn if the interest is left to accumulate?$ How much interest will you earn if the interest is withdrawn each year?$
Consider a $1,000 deposit earning 7 percent interest per year for six years. What is the future value? How much total interest is earned on the original deposit? How much is interest earned on interest?
1. You invest $1,000 in a certificate of deposit that matures after ten years and pays 5 percent interest, which is compounded annually until the certificate matures. a. How much interest will you earn if the interest is left to accumulate?
You invest $3,000 in a Certificate of Deposit paying an annual compound interest of 1.26% for 10 years and then move it into a savings account that pays 0.70% interest compounded annually. What is the final balance in your account at the end of 18 years?
If you invest $5000 in a certificate of deposit that matures after ten years and pays 5% interest, which is compounded annually until the CD matures. How much interest will you earn if the interest left to accumulate? How much interest will you earn if the interest is withdrawn every year?
You invest $2,300 in a 4-year certificate of deposit (CD) that pays 3.2% interest, compounded annually. How much money will you have when the CD matures?
How much must you deposit each year into your retirement account starting now and continuing through year 10.00 if you want to be able to withdraw $95000 per year forever, beginning 33.00 years from now? Assume the account earns interest at 9.00% per year. (Round the final answer to three decimal places.) The amount to be deposited is determined to be $
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 invest $3000 in a four-year certificate of deposit (CD) that pays 1.5% interest compounded monthly the first 3 years and 2.2% compounded daily the last year. What is the value of the CD at the end of the four years?
You have $7,000 to invest in a 2-year certificate of deposit (CD) that pays 8% interest compounded annually. How much will you have when the CD matures?
consider a $5,600 deposit earning 10 percent interest per year for 10 years. What is the future value? How much total interest is earned on the original deposit? How much is interest earned on interest? (do not round intermediate calculations. Round your answer to 2 decimal places.)