Lucas opens a bank account with 10000 and lets it accumulate at an annual nominal interest rate of 6% convertible monthly. Danielle also opens a bank account with 10000 at the same time as Lucas, but it grows at an annual nominal interest rate of 3% convertible semiannuallly.For each account, interest is credited only at the end of each interest conversion period.Calculate the number of months required for the amount in Lucas’ account to be at least double the amount in future months. a. 276 b. 277 c. 282 d. 288 e. 290
Lucas opens a bank account with 10000 and lets it accumulate at an annual nominal interest rate of 6% convertible monthly. Danielle also opens a bank account with 10000 at the same time as Lucas, but it grows at an annual nominal interest rate of 3% convertible semiannuallly.For each account, interest is credited only at the end of each interest conversion period.Calculate the number of months required for the amount in Lucas’ account to be at least double the amount in future months. a. 276 b. 277 c. 282 d. 288 e. 290
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 31P
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Lucas opens a bank account with 10000 and lets it accumulate at an annual nominal interest rate of 6% convertible monthly. Danielle also opens a bank account with 10000 at the same time as Lucas, but it grows at an annual nominal interest rate of 3% convertible semiannuallly.For each account, interest is credited only at the end of each interest conversion period.Calculate the number of months required for the amount in Lucas’ account to be at least double the amount in future months.
a. 276
b. 277
c. 282
d. 288
e. 290
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