Paige is planning on depositing $1,000 in one of two different savings accounts from two financial institutions: MoneyFirst and MakeCents. The MoneyFirst account offers an interest rate of 0.15% APR, compounded monthly. The MakeCents account offers an interest rate of 0.14% APR, compounded weekly. Which is the better financial decision: the higher interest rate or the more frequent compounding?   Higher interest rate   More frequent compounding

Q: You need to turn $11,827 dollars into $18,864 dollars in 7 years.  Assuming you make no extra…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: Consider the two savings plans below. Compare the balances in each plan after 14 years, Which person…

A: given data  yolanda deposits 300 every month Apr = 4% = 4/12 = 4/1200 = 1/300 future value after 14…

Q: You have $480 to put into a savings account, and a bank offers you two options: Account A pays 3.1%…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: You have a balance of $5,000 on your credit card, which charges an interest rate of 1.3% per month.…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: Recently, you made multiple large purchases on your credit card totaling $14,700. The interest rate…

A: Time value tells that money received today has more value than that of receiving exact value later…

Q: Manuel Rios wishes to determine how long it will take an initial deposit of $10,000 to double. If…

A: Therefore, the maturity period is 7.27 years.

Q: You are considering two ways of financing a spring break vacation. You could put it on your credit…

A: Credit card annual interest rate = 18% Compounding = Monthly Parent loan semi annual interest rate =…

Q: You are saving to buy a $150,000 house. There are two competing banks in your area, both offering…

A:

Q: You can earn .41 percent per month at your bank.   If you deposit $2,400, how long must you wait…

A: Using excel NPER function

Q: Barbie is going to borrow $5,000 to help write a book.  The loan is for one year and the money can…

A: Option 1: 1 year loan borrowed at prime rate = 11%Effective interest cost = 11%Option 2: 1 year loan…

Q: Consider the two savings plans below. Compare the balances in each plan after 15 years. Which person…

A: Future Value of annuity : To know the which plan is better we have to calculate the future value of…

Q: Zachary Porter of Abilene, Kansas, is contemplating borrowing $10,000 from his bank. The bank could…

A: The finance charge is add-on interest paid by the borrower. These charges can be paid monthly,…

Q: Jenny is planning to deposit ₱17,000.00 Quezon Metropolitan Bank is offering 7.5% compounded…

A: The effective annual rate can be used to compare the two different interest with different…

Q: Brandon has reached his credit card limit of $5000.00. Using an online calculator, Brandon…

A: Mortgage/ Borrowings:  Borrowings are the loan which is taken by the individual to meet its…

Q: Suppose that the parents of a young child decide to make annual deposits into a savings​ account,…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: Manuel Rios wishes to determine how long it will take an initial deposit of $10,000 to double. If…

A: MS-Excel --> Formulas -->Financials --> NPER Therefore, the maturity period is 7.27 years.

Q: If you deposit $8,000 in a bank account that pays 4% interest annually, how much will be in your…

A: Deposit=$8000Interest rate=4%Number of years=5

Q: Zachary Porter of Abilene, Kansas, is contemplating borrowing $10,000 from his bank. The bank could…

A: Add-on Method As per this method, the interest is calculated at the start of the loan. It is then…

Q: Wants to loan from a certain bank. He asks you for a piece of advice for him to save from the loan.…

A: To analyse the given options, we shall compare the effective interest rate which can be calculated…

Q: Jenny puts $200 into a savings account today, the account pays an annual interest rate of 5%, but…

A: Invested amount = $ 200 Annual interest rate = 5% Semi annual interest rate = 5%/2 = 2.50%…

Q: Recently, you made multiple large purchases on your credit card totaling $10,350. The interest rate…

A: Formulas:

Q: Suppose you have $8,675,309 to deposit into a savings account for one year. The bank lets you choose…

A: Here Investor has $8,675,309 to deposit for 1 year @ 12% in two options: Compounded annually…

Q: Suppose you decide to deposit $11,000 in a savings account that pays a nominal rate of 6%, but…

A: The interest rate that did not take inflation, any fees on the loans, and compounding of the…

Q: They plan to use their $40,000 is savings to cover the closing costs the bank will charge them,which…

A: The solution is based on the following assumption:It is assumed that the sum of amount to be…

Q: Suppose I have a balance of $4500 on my Bank of America credit card.  Assume the interest rate on my…

A: Payment is made monthly, hence it is a question of annuity. Annuity means number of payments which…

Q: Marcia wants to have $1000 in 10 years. Marcia plans on making no deposits or withdrawals. The…

A: Marcia should invest in that option in which the EAR (effective annual rate) is the highest. EAR =…

Q: Today the average undergraduate student is responsible for paying off a $3,500 balance on his/her…

A: APR on credit card: It is the rate that converts the credit card charge into a daily periodic rate.

Q: Zachary Porter of Abilene, Kansas, is contemplating borrowing $10,000 from his bank. The bank could…

A: The provided information are: Amount being borrowed from bank = $10,000 Rate of interest (i) = 7% =…

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: The amount due at month-end: The amount due at month-end can be computed by adding all the charges…

Q: Read and analyze each given scenario and provide what is asked. Show your complete solutions. 1. It…

A: Note: “Since you have asked multiple question, we will solve the first question for you. If you want…

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: Finance Charge is the amount of interest being charged on the borrowed amount from the lenders.

Q: open a savings account that pays 5% interest compounded quarterly and he will be making $150 qu…

A: Future value is amount deposited and compound interest earned on that.

Q: Randy Ice starts the month with a balance on his credit card of $1000. On the 10th day of the month,…

A: Finance charge is calculated by deducting the payment from the balance of the credit card and…

Q: If you deposit $7,000 in a bank account that pays 9% interest annually, how much will be in your…

A: Future value is the expected value of annual deposit to be made at specified interest rate. Given:…

Q: Suppose that the parents of a young child decide to make annual deposits into a savings account,…

A: First, we'll determine the present value of deposits at the end of 18th year…

Q: ane is having difficulty deciding whether to put her savings in the Mystic Bank or in the Four…

A: Future Value is also called maturity value of investment it's includes the interest earn on the…

Q: Hannah is exploring savings options from several different banks and has settled on one of the…

A: The Effective Annual interest Rate (EAR) is the real rate of return earned on an investment after…

Q: After examining the various personal loan rates available toy, you find the can borrow funds from an…

A: Individuals prefer to obtain the loan at the lowest possible cost. The lenders advertise the loan on…

Q: ill need $15,000 annually for 4 years to complete your education. (One year from today you will…

A: The given problem can be solved using PV and FV function in excel. PV function computes amount to be…

Q: Consider the two savings plans below. Compare the balances in each plan after 14 years. Which person…

A: P = PMT [((1 + r)n - 1) / r]   Where: P = Future value PMT = Annuity paymentr = Interest raten =…

Q: If you deposit $3,000 in a bank account that pays 12% interest annually, how much will be in your…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You have a credit card with an APR of 16%, compounded monthly, that has a balance of $7,000. You…

A: given, PV 7000       RATE 16%       COMPOUNDING PER YEAR 12       PMT -150       balance…

Q: You are considering getting a new credit card from Imperial Credit Union. The credit union has…

A: Annual rate of Interest is given as 17.70%. (compounding monthly)Monthly rate of interest (17.70/12)…

Q: Suppose that your weekly cash expenses are $80. Every time you withdraw money from the automated…

A: The practice of collecting and managing cash flows is known as cash management. Individuals and…

Q: You are a financial adviser, and your client wants to save $6,000 in order to make a downpayment for…

A: Future value (FV) = $6,000 Quarterly interest rate (r) = 0.009 (0.036 / 4) Quarterly period (n) = 8…