2.- $3,500 is deposited into a savings account at the end of each semester for eight and a half years. If no withdrawals are made, how much money will be in the account? The interest rate is 5.5% per semester compounded every semester. Options: 100137.28 102512.37 96789.21 94487.41

2.- $3,500 is deposited into a savings account at the end of each semester for eight and a half years. If no withdrawals are made, how much money will be in the account? The interest rate is 5.5% per semester compounded every semester. Options: 100137.28 102512.37 96789.21 94487.41

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 26P

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

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100137.28

102512.37

96789.21

94487.41

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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.
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