Second Union Bank pays 5 percent simple interest on its savings account balances, whereas Third Street Bank pays 5 percent compounded annually. If you made a $12,000 deposit in each bank, how much more money would you earn from your Third Street Bank account at the end of 15 years? Do not use $ or commas. Use two decimals

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A: Compound interest is the additional interest earned on the reinvested amount. It is interest on…

Q: You deposit $2,500 at the end of the year (k = 0) into an account that pays interest at a rate of 7%…

A: Saving Account is a deposit facility offered by commercial banks to their customers which gives them…

Q: You deposited $5,000 four years ago into a bank account.  Two years ago, you deposited an additional…

A: The future of money is the accumulation of the present amount. It determines with the help of a…

Q: Old Time Savings Bank pays 7.25% interest on its savings account. If you deposit $1,000 in the bank…

A: Annual Interest Rate = 7.25% Deposit = 1000

Q: First City Bank pays 7 percent simple interest on its savings account balances, whereas Second City…

A: First City Bank Interest rate = 7% simple interest Second City Bank Interest rate = 7% compounded…

Q: A bank pays simple interest at the rate of 8% per year for certain deposits. If a customer deposits…

A: Formula: Interest amount = Deposit amount x Time period x Interest rate

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A: Time value of money: The time value of money is the idea that the value of money received today…

Q: First City Bank pays 7.5 percent simple interest on its savings account balances, whereas Second…

A: First City Bank  Interest Rate = 7.5% Simple Interest Rate   Second City Bank Interest Rate = 7.5%…

Q: 1. First City Bank pays 7 percent simple interest on its savings account balances, where Second City…

A: 1) Simple interest rate of First City Bank (r) = 7% Compound interest rate of Second City Bank (i) =…

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A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Suppose a bank pays you 2% annual interest compounded quarterly. You deposited $2,350. How much will…

A: Computation:

Q: First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City…

A: Simple interest is the additional amount that the bank pays for depositing a sum in the account. In…

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A: Deposit amount = $600  Interest Rate = 5±70 compounded quarterly i.e 4.3 or 5.7 compounded quarterly…

Q: Bank A offers a nominal annual interest rate of 5% compounded daily, while Bank B offers continuous…

A: Here, Bank A: Annual Interest rate = 5%  No. of Compounding Periods = 365 days Present value of…

Q: Bank of Vancouver pays 7 percent simple interest on its savings account balances, whereas Bank of…

A: Simple interest is an ordinary interest payble at equal amount over specified period over principal…

Q: Can you please help me work out this problem in detail?   Minnie Rose deposited $15,000 in Street…

A: The question is based on the concept of compound interest calculation with quarterly compounding…

Q: First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City…

A: Simple interest = Principal * Rate * time

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A: Opportunity Cost refers to the potential benefit foregone when choosing one alternative over…

Q: 7. If you want to collect ¢ 5,000,000 in 4 years and for this you make deposits every end of the…

A: N = 4*12 FV = 5,000,000 rate = 18%/12 PV = 0 use PMT function in Excel value of deposit before…

Q: Find the equivalent present worth of the cash receipts in the accompanying diagram, where i = 8%…

A: We know that the formula to calculate the present value is I/(1+i)n, where I is the cash flow that…

Q: It is now January 1, 20x8. Today you will deposit P100,000 into a savings account that pays 8%. a.…

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

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A: Given data; Bank America interest rate = 5% compounding frequency by Bank America = quarterly Bank…

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A: Interest rate = 9% Quarterly interest rate (r) = 9%/4 = 2.25% Future value (FV) = 5000 Period = 5…

Q: First City Bank pays 8 per cent simple interest on its savings account balances, whereas Second City…

A: Future value (FV) is the value of a current asset at a future date

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A: Certificate of Deposit (COD) is a definite term deposit facility which provides higher interest than…

Q: A local bank is advertising that it pays depositors 6% compounded monthly, yielding an effective…

A: Simple interest is calculated by multiplying principal into rate of interest for the given period of…

Q: Bank pays 5 percent simple interest on its saving account, whereas Collar Bank pays 5 percent…

A: Simple interest is the interest on principal amount and no interest on interest but in the…

Q: Some time ago, you put £500 into a bank account for a "rainy day." Since then, the bank has been…

A: In this case, we have to use the Compound interest formula or future value formula.

Q: Find the equivalent present worth of the cash receipts in the accompanying diagram, where i = 8%…

A: Present Value refers to the value of cash flows today which is to be received at some future time…

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A: The Present Value of a one-time deposit: The Present Value of a one-time deposit refers to the…

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A:

Q: Browns Bank pays 8 percent simple interest on its savings account balances, whereas Raiders Bank…

A: 1) Browns bank interest rate (r) = 8% simple interest Raiders bank interest rate (i) = 8% compound…

Q: 1. Simple Interest versus Compound Interest First City Bank pays 7 percent simple interest on its…

A: First city bank simple interest rate (i) = 7% Second city bank compound interest (r) = 7% Deposit…

Q: If you deposit $700 in a bank account that earns 5 percent per year, how much total interest will…

A: Interest Amount = Principal * ( 1 + r )n - Principal

Q: If you put $259 into a bank account that pays 3.5% interest, compounded 9 times per year, how much…

A: Workings:

Q: You deposit $2,000 in an account today earning 8% per year.  Five years from today, you make another…

A: Using excel PV and FV function

Q: you deposit $5,000 in a bank t years ago. Your current account balance is $8,200, and the bank…

A: Given: Particulars Amount Present value(PV) $5,000 Future value(FV) $8,200 Interest rate…

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

A:

Q: First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City…

A: a) simple interest on first city bank Simple interest = Amount * rate * time

Q: Jack Abrams borrowed $8,000 for nine months at an interest rate of 7% (simple interest). The bank…

A: Actual interest rate is computed below:

Q: The Little Red-Haired Girl makes quarterly deposits into an account paying an effective interest…

A: If the little Red- Haired girl and start with $4,200.00 in a savings account earning a 14%(3.5×12)…

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A: As the compounding periods increase the interest amount increases thereby increasing the amount…

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A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: You put $250 in the bank for 5 years at 12%. If interest is added at the end of the year, complete…

A: Future  value  = Present value ×(1+pir)^n   N = number of periods  = 1 year (for first year) Pir =…

Q: 1. Simple Interest versus Compound Interest. First City Bank pays 8 percent simple interest on its…

A: Interest is an additional amount which is earn by investor by investing his money. Interest is…

Q: A company deposits $3500 in a bank at the end of every year for 12 years. The company makes no…

A: Using excel FV function

Q: Bank A offers a nominal annual interest rateof 6.5% compounded daily, while Bank B offerscontinuous…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…