Which of the following would provide the greatest return on $15,000 if it is invested at a nominal rate of 6% for one year? Group of answer choices quarterly compounding semi-annual compounding annual compounding monthly compounding
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Which of the following would provide the greatest return on $15,000 if it is invested at a nominal rate of 6% for one year?
Group of answer choices
quarterly compounding
semi-annual compounding
annual compounding
monthly compounding
Step by step
Solved in 3 steps
- 2. How long until a lump-sum investment of $40,000 becomes $90,000 at 5% annual interest compounded monthly? Round your answer to the appropriate month and answer as years/months as show in the text.What are the future value and the interest earned if $3800 is invested for 7 years at 8% compounded quarterly? (Round your answers to the nearest cent.) Give typing answer with explanation and conclusionFind the effective annual rate for an investment that pays APR of 4.5% with Annual compounding Quarterly compounding Monthly compounding
- If an initial investment of $1,000 is invested at 8% interest per year with semi-annual compounding, how much would be in the account after five years? A. $1,081.60 B. $1,061.66 C. $1,051.00 D. $1,281.60 The difference between the present and future worth of money at some time in the future is called A. Discount B. Deduction C. Inflation D. DepletionIf $17,500 is invested at an interest rate of 10% per year, find the value of the investment at the end of 5 years for the following compounding methods, to the nearest cent. 1) Annual: $ 2) Semiannual: $ 3) Monthly: $ 4) Daily: $If $5,000 is invested at an annual rate of 6.5% compounded continuously, the future value S at any time t (in years). a. Write the equation for future value. the he n b. What is the amount after 18 months? Round your answer to the nearest cent.
- Solve for the future value of $1,300 after 1 year invested at 4 percent if compounding is a) annual. b) semiannual. c) quarterly. and d) monthly.What is the effective annual rate (EAR) if the stated rate is 8 percent and compounding occurs semiannually? Quarterly? a. The future value of $500 invested at 8 percent for one year b. The future value of $500 invested at 8 percent for five years c. The present value of $500 to be received in one year when the opportunity cost rate is 8 percent d. The present value of $500 to be received in five years when the opportunity cost rate is 8 percentWhat is the future value of $1000 after 4 years under 10% annual compounding?Semiannual compounding?Quarterly compounding? Monthly compounding? Daily compounding
- An amount of $12 000 is invested for a period of 9 months at 3% p.a. compounded monthly. The compound interest formula to calculate the future value of an investment over a period of time is: What would the n in the formula be?Find the accumulated value of an investment of $15,000 for 4 years at an interest rate of 4.5% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. Round answers to the nearest cent. a. What is the accumulated value if the money is compounded semiannually?Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the stated interest rate after the stated amount of time. 1% per year, compounded annually, after 14 years