(b) Using daily compounding, calculate the compound amount (in $) of a $9,000 investment for each of the three CDs. • The First National Bank is offering a 5 year CD at 4% interest. • The Second National Bank is offering a 5 year CD at 3% interest. • The Third National Bank has a 5 year CD at 4.5% interest. First National Bank 2$ 10992.50 Second National Bank $ 10456.44 Third National Bank $
(b) Using daily compounding, calculate the compound amount (in $) of a $9,000 investment for each of the three CDs. • The First National Bank is offering a 5 year CD at 4% interest. • The Second National Bank is offering a 5 year CD at 3% interest. • The Third National Bank has a 5 year CD at 4.5% interest. First National Bank 2$ 10992.50 Second National Bank $ 10456.44 Third National Bank $
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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FUTURE VALUE FORMULA:
PV=PRESENT VALUE
R=RATE OF INTEREST
N=NUMBER OF YEARS
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