päring two banks. One bank Is online and offers a savings account Interest rate of 1.75% compounded quarterly. One bank is in your hometown and offers savings account interest rate of 1.72% compounded daily. You have $4500 to keep in a savings account for 2 years, so you need to decide which bank would pay more Interest. The online bank has an APY of what percentage? Round your percentage to three decimal places) 1.762 The hometown bank has an APY of what percentage? Round your percentage to three decimal places) 1.735 ✓ %. Therefore if you invest the same amount of money for the same amount of time, the bank that pays more interest is O Online bank Hometown bank %. How much more interest would you earn at the bank you just selected compared to the other bank? State your result rounded to two decimal places. Enter a number. Hint: You will need to use the original investment information to calculate the interest earned on each account.

päring two banks. One bank Is online and offers a savings account Interest rate of 1.75% compounded quarterly. One bank is in your hometown and offers savings account interest rate of 1.72% compounded daily. You have $4500 to keep in a savings account for 2 years, so you need to decide which bank would pay more Interest. The online bank has an APY of what percentage? Round your percentage to three decimal places) 1.762 The hometown bank has an APY of what percentage? Round your percentage to three decimal places) 1.735 ✓ %. Therefore if you invest the same amount of money for the same amount of time, the bank that pays more interest is O Online bank Hometown bank %. How much more interest would you earn at the bank you just selected compared to the other bank? State your result rounded to two decimal places. Enter a number. Hint: You will need to use the original investment information to calculate the interest earned on each account.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter4: Managing Your Cash And Savings

Section: Chapter Questions

Problem 7FPE: Calculating interest earned and future value of savings account. If you put 6,000 in a savings...

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Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
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.
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
You put $250 in the bank for S years at 12%. 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 fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?