Question 11Suppose I deposit $1,800 in an account for which simple interest of 10% is payable.How much money will I have in the account at the ehd of 20 years? A.much would I have in the account if the interest compounded yearly instead?B.HowO A. $5,400 and B. $12,110O A. 3,600 and B. $12,110A. $3,600 and B. $13,910OA. $5,400 and B. $13,910.

here we calculate how much money will be in the account by the following method as follow;

Suppose I deposit How much money will I have in the account at the end of 20 years? Á. much would I have in the account if the interest compounded yearly instead? В. Höw OA. $5,400 and B. $12,11O OA. 3,600 and B. $12,110 A. $3,600 and B. $13,910 OA. $5.400 and B. $13,910.

Suppose I deposit How much money will I have in the account at the end of 20 years? Á. much would I have in the account if the interest compounded yearly instead? В. Höw OA. $5,400 and B. $12,11O OA. 3,600 and B. $12,110 A. $3,600 and B. $13,910 OA. $5.400 and B. $13,910.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 1CQQ

See similar textbooks

Related questions

Q: Market for Florida Oranges 50 45 I Price (Dollars per box) 15 Supply 40 Quantity Demanded (Milions o...

A: A binding price ceiling occurs when the Government sets the goods price below equilibrium. It is bin...

Q: Name the Theory applied to interpretation of contracts where the court looks at how a 'reasonable 3r...

A: Objective theory - As per the objective theory of contracts, a contract between parties is legally b...

Q: 2. Show on a diagram how a negative external effect can lead to a situation where marginal social co...

A: Profit maximization is that the method by that a corporation determines the rating, input, and outpu...

Q: What is Succession Planning? Explain the importance of Succession Planning in an organization. (simp...

A: The practice of identifying essential jobs within your organisation and generating action plans for ...

Q: Marginal cost function (C'(q)) and marginal yield function ('R(q)) to extract a smartphone is as fol...

A: Marginal cost is the additional cost incurred in order to produce an additional unit of output.

Q: two goods Folger can afford. Move point A to mark the 110 combination of the two goods he will choos...

A: Answer: According to the above figure, point A lies where the consumer consumes 6 books and 50 cups...

Q: A thug wants the contents of a safe and is threatening the owner, the only person who knows the code...

A: When talking about rollback game, it is the situation when the game is either a finite extensive gam...

Q: 4. Show on a diagram how an individual may seek to smooth their consumption over their lifetime. How...

A: * ANSWER :- (4) Based on the given information the explanation is as follows.

Q: 7 Suppose the following model describes the relationship between annual salary (salary) and the numb...

Q: Apples Oranges Price Quantity Price Quantity Year (Dollars per apple) (Number of apples) (Dollars pe...

A: Nominal GDP measures the value of goods and goods and services produced in the economy at current ye...

Q: Questions A.12 - A.20: Answer the following questions based on the data in the table for nominal inc...

A: Consumer price index CPI shows the cost of market basket of goods and services which is bought by a ...

Q: Darien invests $10,000 in an account that pays 3.2% interest per year, compounded semi-annually. Wha...

A: Interest can be defined as the amount received in excess of the principal amount to the investor. Th...

Q: What other factors do you think can impact the decision of EU students of whether or not to apply to...

A: During the academic year 2016 -17, British students enrolment – 81% Foreign students other than EU ...

Q: The cost function for Acme Laundry is: TC(q)=10+10q+q^2 so its marginal cost function is:...

A: please find the answer below.

Q: aswer the following questions. What is the difference between Gross Domestic Product and Gross Natio...

A: Note: You have uploaded two questions simultaneously at a time, therefore we shall answer the first ...

Q: Suppose the demand and supply curves for product TOTOM are Qd =550 – 2.5 p Qs = -125 + 4p Find the...

A: Equilibrium is achieved at a point where demand curve intersects the supply curve. Any price above t...

Q: qualities explain in 5-10 sentences

A: Equality is the situation when there will be equal distribution of each and everything like sex , ge...

Q: 1. The economy's income and expenditure The following diagram presents a circular-flow model of a si...

A: The circular flow model is used to understand the nature of flow of income from firms to households ...

Q: ndustry has spend on as many as 3 cis to ennance her usiness. Use the PW method to determine which o...

A: Here we calculate the present worth of the all product and compare and select the best investment so...

Q: student plans to deposit P1, 500 in a bank now and another P3, 000 for the next two years. If he pla...

A: Amount after n years is written as : A = P(1+r)n Here, A = amount after n years, P = Value deposited...

Q: From the production data in the table below, calculate the VMP for the 2nd unit of labor. Assume the...

A: The Value of Marginal Product (VMP) calculates the amount of a firm's revenue that a unit of product...

Q: The constant annual operating costs of a small machine are expected to be $150,000 for the next four...

A: The answer is given below

Q: 4. Show on a diagram how an individual may seek to smooth their consumption over their lifetime. How...

A: The Life-Cycle Hypothesis is defined as a theory which states that consumers tend to smooth their co...

Q: Your marketing department has identified the following customer demographics in the following table....

A: Given: MC = $1 Group Value Frequency Baby Boomers $5 20% Generation X $4 10% Generation Y $...

Q: A firm requires exactly four full-time workers to operate each piece of machinery in the factory. Us...

A: In economics, an isoquant is a curve that, when plotted on a graph, shows all of the combinations of...

Q: . Effects of rent control Rent controls force landlords to price apartments below the equilibrium pr...

A: The correct options are C and D C. Nonprice methods of rationing emerge. D. The quantity of avai...

Q: Suppose the government is trying to determine how to deal with pesticide contamination of its water ...

Q: Figure 6-2 8 Supply 7 6 4 Price Ceiling 3 Demand 1 30 60 90 120 150 180 210 240 QUANTITY Refer to Fi...

A: Price ceiling is the situation when government or market regulating authority sets the maximum level...

Q: Enumerate one contribution of entrepreneurship to economic development. How can you relate it to rea...

A: Entrepreneurship: It is the creation or extraction of significant worth. The method of entrepreneurs...

Q: Instructions: Round your responses to the nearest billion, If you are entering any negative numbers ...

A: The given table gives information about the nominal GDP and GDP deflator for year 2000 to 2019.

Q: Question 5 a. Using the table below which outlines the price and quantity demanded of three goods, c...

A: 1. price elasticity of demand :- = Change in quantity / Change in price change in Quantity =...

Q: Microsoft Windows 8 Versions and U.S. Prices Version Price Full from Microsoft 249.99 Upgrade from M...

A: As we know that Microsoft Window is a popular operating system developed by Microsoft corporation. N...

Q: The price elasticity of demand is 5.0 if a 10 percent increase in the price results in a;

A: Given information, Price elasticity of demand: 5.0 Change in price: 10% To find: Change in quantit...

Q: tobert's utility over wealth, w, in a given state is given by: u(w) = Vw. Robert is parking his car....

A: Maximum willingness to pay depends on the expected utility of consumer. Expected utility must equal ...

Q: An object is sold in a first-price auction – thus, the highest bidder wins the object and price is e...

A: Given information There are two players: Odd Bidder(Player 1) & Even Bidder (Player 2) Strategie...

Q: 2 Consider Anna and Joe, who value a certain good by the same amount v and can choose to either cont...

A: Given, Two Players : Anna and JoeThey both have two strategies : Contribute and Not Contributeamoun...

Q: This is a schedule of the total benefits and total costs for product "X 2 Quantity Total Benefit 9 1...

A: In the above question, it is given that : A schedule of total benefits and total costs for product ...

Q: Explain with comprehensive what the government can do to reduce the gap of life expectancy between t...

A: Life expectancy refers to the number of years a person is expected to live depending upon the date o...

Q: Identify which of the following would be included in GDP as calculated by the final goods and servic...

A: Gross domestic product(GDP) measures the money value of all final goods and services produced in an ...

Q: et X1, X2, X3, X4 have the joint probability density function f(x1, x2, x3, x4) = ( 24e −(x1+x2+x3+x...

A: Let X1, X2, X3, X4 have the joint probability density function, Let So, Here, So Jacovian o...

Q: Table 1 shows the wage for man and women in two firms. Firm Men Women Wage Wage Indah RM95 RM86 Gaga...

A: Wage discrimination: Wage segregation is viewed as established in managers' biases against ladies, w...

Q: Under Economic Flows Give 3 different examples of Other Flows

A: Other flows are changes in asset and liability values that do not occur during transactions. The fir...

Q: Suppose that the government imposes a proportional income tax on the representative consumer’s wage ...

A: Labor and Income: The majority of people earn the majority of their money by leasing their labour. ...

Q: Beginning with a capital input of 4 and a labor input of 49, show that the marginal product of labor...

A: q = 100 x K0.75L0.25 Marginal product of labor, MPL = dq / dL = 100 x 0.25 x (K / L)0.75 = 25 x (K /...

Q: QUESTION 5 Using the table below, calculate total consumer surplus for Beanie, Mitch, and Frank if t...

A: Consumer surplus, also known as buyer's surplus, is the economic measure of a customer's excess bene...

Q: The economics and politics of multilateral agreements. Discuss

A: Multilateral trade agreements have important political drivers and foundations, although being large...

Q: The demand for stoves is given by QD=450−20? and the market supply is given by QS = 20 + 100P In eq...

A: In economics, supply and demand refers to the relationship between the amount of a commodity that pr...

Q: 2) Consider a Cournot duopoly, where each firm has a marginal cost MC = 80, and the total market dem...

A: Here we calculate the followings terms by using the given demand function in duopoly market , so the...

Q: 1. Show on a single diagram, given a competitive market, how an increase in demand will provide the ...

A: A competitive market is one in which there are many customers and sellers selling similar goods and ...

Q: 1. If NX=0, then savings must be equal to invesment Select one: True False

A: (Since you have asked many questions, we will solve the first one for you. If you want any specific ...

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What is the present value of $1.21 received at the end of two years if the interest rate is 10% and compounding is annual? a- 1.31 b- 1.21 c- 1.10 d- 1.00 Which of the following is a leading economic indicator? a- average prime interest rate charged by banks b- stock prices, 500 common stocks c- commercial and industrial loans outstanding d- industrial production
Suppose Ted deposits $10,000 in a savings plan earning 5% compounded annually and Tess deposits $10,000 ina savings plan earning 10% compounded annually. Both leave their money on deposit for 40 years. Because Tess’srate is twice as great as Ted’s rate, is it true that Tess will earn twice as much interest? Explain why or why not.Then show calculations to prove your point of view. What is the future value for each investment? N i PV PMT FV 5 10
4. Eleanor makes year-end deposits of 500,000 the first year, 550,000 the second year, 605,000 thethird year, and so on increasing the next year’s deposit by 10% of the deposit in the preceding yearuntil the end of the 10th year. Ronald makes equal year-end deposits of 720,00,000 each year for 10years. A.) Is the gradient of Eleanor’s payments increasing or decreasing?B.) If interest on both funds is 12% compounded annually, who will be able to save more atthe end of 10 years.
1. What is the Single Payment Compound Amount factor for an interest rate of 2% over 10 years? 2. What is the Uniform Gradient Future Worth factor for an interest rate of 10% over 10 years? 3. What is the Uniform Series Present Worth factor for an interest rate of 5.5% over 20 years? 4. A bank pays 3% interest per year (compounded annually). a. To what amount will a $5,000 deposit grow if left in the bank for 10 years? b. Draw the Cash Flow Diagram for this problem.
Rework part (f), assuming that Annie holds the bond for 10 years and sells it when the required return is 7.0%. Compare your finding to that in part (f), and comment on the bond's maturity risk. PV= 1,000 N=10 I/Y= 7% Assume that Annie buys the bond at its current price of $983.80 and holds it until maturity. What will her current yield and yield to maturity (YTM) be, assuming annual interest? After evaluating all of the issues raised above, what recommendation would you give Annie with regard to her proposed investment in the Atilier Industries bonds?
3. If you deposit $1000 in an account that pays 5% interest, compounded annually, how much will you have at the end of 10 years? 50 years? 100 years? What if this is compounded Semi annually in 10 years? 50 years? 100 years?
Suppose that you purchase a 2 year coupon bond at the time it is issued for $1100. The face value of the bond is $1000, with annual coupon payments of $80. a. What is the bond’s “coupon rate”? b. What is the bond’s “current yield”? c. What is the bond’s (nominal) “yield to maturity”? d. If you hold the bond for 1 year and sell it for $1035 (after collecting the first coupon payment), what is your “holding period rate of return”? Please answer all part otherwise Dounvote
Consider a 25-year loan with an annual interest rate of 7 percent and monthly payments of $1,201.53. The discount points charged by the lender at origination are 3 percent and the cost of borrower title insurance and mortgage insurance are, respectively, 0.5 percent and 2.0 percent of the loan amount. Additional fees paid to other third parties (i.e., not the lender) will equal $4,000. What is the loan amount? What is the lender’s yield/IRR? What is the effective borrowing cost (EBC)? USE EXCEL
28)You recently obtained a $135,000, 30-year mortgage with a nominal interest rate of 7.25 percent. Assume that payments are made at the end of each month. What portion of the total payments made during the fourth year will go towards the repayment of principal?
9.How much will you accumulate if you invest $800 a year for 10 years at a rate of 8% per year? How much will you accumulate if $200 per quarter is invested at a rate of 8% per year compounded quarterly? 10.You now have $20,000 which can be invested at 9% per year. a.For how many years can you spend $2671? b.What is the most you can spend per year for the next 20 years?
Give typing answer with explanation and conclusion Gustav Co. is planning to issue new 30-year bonds. The current plan is to make the bonds non-callable, but this may be changed. If the bonds are made callable after 5 years at a 5% call premium, how would this affect their required rate of return? Question 6 options: There is no reason to expect a change in the required rate of return. The required rate of return would increase because the bond would then be?
what would be the present value of the bond if the bond has 3 years to maturity instead of one? what would be the present value of the bond 6 months from now if the bond has three years to maturity instead of one? same question just 3 ytm instead of 1