Suppose you have $5,000 to invest for the next 40 years. You are given 3 choices on where to invest your money.Account #112.20% compounded weeklyAccount #212.18% compounded daily12.16% compounded continuouslyAccount #3Calculate the APR (assume P-$100, t=1 year) for each account. Round to 2 decimal places, in percent form.APRAccount #1%Account #2%Account #3%SHOW WORK BELOW:Based on your calculations, which account will you invest your $5,000? Why? How much money will you have after 40years in the account that you have chosen? How much in total interest will you gain? In other words, from $5,000, by howmuch did your money increase?

Calculating APR (Annual Percentage Rate)We'll use the concept of Effective Annual Rate (EAR) to…

Answered: Suppose you have $5,000 to invest for…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 3CE

See similar textbooks

Similar questions

You put $600 in the bank for 3 years at 15%. 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 third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
Suppose that you deposited $5,999 at the end of each year in a Roth IRA account earning an annual rate of 5.01% for the next 15 years. How much would be on deposit at the end of the 15th year? In the space below, please indicate what the following variables are (enter answers to four decimal places and be mindful as to whether the variable is a positive or negative number): 1. PV 2. FV 3. Rate % 4. Periods 5. Payment
If you put $10 in a savings account at the beginning of each year for 11 years, how much money will be in the account at the end of the 12th year? Assume that the account earns 11%, and round to the nearest $1.00. a. $217 b. $241 c. $68.89 d. $76.47 Please solve problem and give correct answer choice above. Please show all work and steps.
Suppose you deposit $1,751.00 into an account today that earns 5.00%. It will take ___ years for the account to be worth $2,806.00. Answer format: Number: Round to: 2 decimal places.
Suppose you invest $2,300.00 in an account with an annual interest rate 3% compounded monthly. (3% annual rate/ 12 months 0.25% each month). Use this information to complete the table below. Round your answer in each box to the nearest cent as needed. Month 1 2 3 4 5 = Starting Balance $2,300.00 $2,305.75 $2,317.29 0.25% Interest on Starting Balance $5.75 5.81 Ending Balance $2,305.75 $2,317.29
If you deposit $500 per year in an account for six years at 9 percent compounded annually, how much will you have in the account? Round your answer to the nearest dollar. $3,270 Give typing answer with explanation and conclusion
You deposit $400 at the end of each month into an account earning 3.7% interest compounded monthly. a) How much will you have in the account in 30 years? P/Y = C/Y = N = I/Y = % PV = $ PMT = $ FV = $ (round to the nearest cent) b) How much will be the total amount of money deposited into the account after 30 years? Total Deposited = $ (enter a positive value) c) How much total interest will you earn? Total Interest= $ (enter a positive value, and round to the nearest cent) ( Explain all point of question with proper step by step Answer. )
Assume you deposit $5,700 at the end of each year into an account paying 11. interest. a. How much money will you have in the account in 19 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g b. How much will you have if you make deposits for 38 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g а. Future value $ 324,555.08 b. Future value $ 2,462,818.38
To find out the balance in your account just after you make your last deposit whereby you will deposit $400 at the end of each 6 months for the next 5 years at a nominal rate of 12% p.a. compounded semi- annually, you can also apply which of the following formula to solve for the accumulated amount manually: Select one: O a. FV= PV(1+i)" FV = PV(1+i)" O b. PVn = PMT[1-(1+ i)*"] /i 1-(1+1) PV = PMT| FVn = PMT[(1+ i)" -1] / i (1+i)"-1 FV = PMT %3D
Suppose you deposit $ 1296 today and your account will accumulate to $ 5637 in 9 years. What is the rate of interest? Input your answer in decimals, not percentages. Round your answer to four decimals places.
Suppose you deposit $10 every week into an account that earns 4% interest compounded weekly. How much money (to the nearest cent) will you have in the account after 5 years? Summarize the information provided, stating the interest rate in a decimal form. d = r = N = k = Solve the problem and give your answer here
Suppose you invest S11.570.00 into an account earming an interest rate of 2.484% compounded continuously for 2 yeart and thereafter earning an interest rate of 3.417% compounded weekly. How much money is in the account after 9 years? The amount in the account is (Note: Your answer should have a dollar sign and be accurate to two decimal places)

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS