Bank A pays 8% interest compounded annually on deposits, while Bank B pays 7% compounded daily. Based on the EAR (or EFF%), which bank should you use? Could your choice of banks be influenced by the fact that you might want to withdraw your funds during the year as opposed to at the end of the year? Assume that your funds must be left on deposit during an entire compounding period in order to receive any interest.

Q: Jenny is planning to deposit P17,000.00 Quezon Metropolitan Bank is offering 7.5% compounded…

A: The amount of deposit = P 17,000 Rate of interest = 7.5% compounded semi-annually  Time period = 5…

Q: How long will it take for an initial investment of $ 133000 to reach a balance of \$1,000,000 ,…

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Q: If the bank advertises it's rate as 6.2% compounded monthly and another bank advertises it's rate as…

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Q: At the time of her​ grandson's birth, a grandmother deposits $3000 in an account that pays 5%…

A: Given P = $3000r = 5% = 0.05t=21n=12A=P1+rnnt

Q: Since he was 21 years old, Ben has been depositing $250 at the end of each month into a tax-free…

A: Answer:-        Given,           Regular payment PMT=300     Rate of interest =4.5%/ year…

Q: Suppose that you had the opportunity of investing 5000$ in a business such that the value of the…

A: Given  that Investing 5000$ in a business increases the value to 6300$ after 5 years.

Q: At the time of her grandson's birth, a grandmother deposits $13,000 in an account that pays 3.5%…

A: Grandmother deposits $13,000. Interest rate is, 3.5%. Number of years is 21.

Q: Rose has saved $160,000. If she decides to withdraw $2500 at the beginning of each month knowing the…

A: From the given, Amount (A) = $160,000 Principle amount (P) = $2500 Rate = 5% per annum Then R =0.052…

Q: An Investment of $10,000 yields 8% interest compounded quarterly. What will be the accumulated…

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Q: Evelyn is going to invest $3,500 and leave it in an account for 16 years. Assuming the interest is…

A: The principal amount Evelyn is going to invest is:  $3,500 Time period:  t = 16 years Interest is…

Q: The AMD investment company has advertised a new Mutual Fund  that has advertised to pay 10 %…

A: new Mutual Fund that has advertised to pay 10 % compounded continuously. Bob invested $ 8,500 in the…

Q: )If the same two $15,000 deposits are made (at time 0 and end of year 4) into a different account…

A: Principal amount= 15000$ Intrest = 8.4 Compund intrest quarterly.

Q: To help with a down payment on a home, Henry is going to invest. Assuming an interest rate of 1.65%…

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Q: What amount must be invested now to have $12,000 after 3 years if money is worth 6% compounded…

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Q: A loan of P72, 000 after 3 years will amount to P128, 600 compounded monthly. What interest rate is…

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Q: You are repaying a $100,000.00 loan in monthly installment of $500.00. At the same time inter added…

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Q: your Visa credit card has an APR of 14.49%, compounded monthly and your current balance is $425.69.…

A: Given query is to find the time required to pay the amount.

Q: When I was considering what to do with the $15,000 proceeds from my sale of technology stock, my…

A:

Q: Suppose you are 25 years old and would like to retire at age 60. Furthermore, you would like to have…

A: Given statement is, Suppose you are 25 years old and would like to retire at age 60.Furthermore, you…

Q: Patrick deposited $8,000 into a CD paying 2.8% compounded continuously. How much will his account be…

A: Continuous Compounding Formula : A = P·er·t where P = initial investment r = rate of interest (in…

Q: If I make an initial investment of $10,000 in a period of 2 years, what will be the value of my…

A: Answer=$10407.07

Q: A mutual fund pays 7% compounded monthly. How much should I invest now so that 2 years from now I…

A: fomula A=P(1+rn)nt

Q: 4 years ago you bought a home for $350,000, which at the time was 4.5% below the home’s fair market…

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Q: If an investment company pays 6.5% compounded semi – annually, how much should you deposit now to…

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Q: no given value so i was thinking of doing 1000? =3p a little confused

A: Take the present value as P, so the future value will become 3P. A(t) = P[1+r/n]nt P= present value…

Q: At the time of her grandson's birth, a grandmother deposits $11,000 in an account that pays 6%…

A: At the child's 21 st  birthday total amount in account will be $

Q: To help with a down payment on a home, Isabel is going to invest. Assuming an interest rate of 1.68%…

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Q: When I was considering what to do with my $8,000 Lottery winnings, my broker suggested I invest half…

A: Total amount to be invested is 8000 Half of the amount invested in Gold Invested in Gold = 4000 rate…

Q: If the bank advertises its rate as 6.2% compounded monthly, and another bank advertises its rate as…

A: Given: One bank advertises its rate as 6.2% compounded monthly and another bank advertises its rate…

Q: RM1,800 is invested in scheme A at 10% per annum for 2 years at simple interest while another…

A: Here we have to find out that scheme which will give profit for investor.

Q: If a lender charges 12% interest, compounded quarterly, what effective annual interest rate is the…

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Q: You are considering investing $5,400 at 9% peryear simple interest for five years or investing the…

A: The formula for simple interest is : S.I=P×r× t100…

Q: How much should be invested in an account paying 9% compounded daily for it to accumulate to $5,000…

A: How much should be invested in an account paying 9% compounded daily for it toaccumulate to $5,000…

Q: An investor doubled the money in his IRA during the time period 1990-1998. Assuming that he was…

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Q: Alex and Toni are twins. After graduation and being finally able to get a job their plan for…

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Q: b. Suppose you as a businessman leave an initial amount of $600 in a savings account at an annual…

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Q: 1. You can make a one-year investment at 7.8% compounded monthly, or 8.1 %compounded semi-annually.…

A: The formula for the compound interest is given by A=P1+rnnt, where A is the final amount, P is the…

Q: What is the principal that will grow to $5600 in six years, eleven months at 3.7% compounded…

A: Compound interest formula A=P1+rnnt where A is accumulated amount P is principal amount r is rate of…

Q: Amanda is going to invest. Assuming an interest rate of 1.66% compounded annually, how much would…

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Q: enl jevo neol airli no begnerio leenelni lo Inuoms ert stsluola b Nicole borrowed $32,000 from a…

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Q: Suppose you are 30 years old and would like to retire at age 65. Furthermore, you would like to have…

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Q: At 27, Joanna Gretz sets up an IRA with Merrill Lynch where she plans to deposit $2000 at the end of…

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Q: To prepare for an upcoming equipment purchase, the finance team at Canada Wire Corp. has invested…

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Q: Suppose that you have $5000 to invest. Which investment yields the greater return over 5 years: 5.5%…

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Q: To help out with her retirement savings, Susan invests in an ordinary annuity that earns 6.6%…

A: This question can be solved using the concept of quarterly compounding.

Q: An investor doubled the money in his IRA during the time period 1990-1999. Assuming that he was…

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Q: My NFT Collection is depreciating in value and is only worth $165,000 as of today. If the value of…

A: NOTE: Refresh your page if you can't see any equations. . here we have P=165000 r=-3%=-0.03…

Q: At what interest rate must $112,000 be invested so that it'll be worth $392,000 in 14 years?

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Q: suppose you invest $6000. Which investment yields the greater return over 4 years 8.25% compounded…

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Q: Bank A pays 4% interest compounded annually on deposits, while Bank B pays 3.5% compounded daily.a.…

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