Christy Reed has been depositing $2,000 in her savings account every December since 2001. Her account earns 7 percent compounded annually. How much will she have in December 2012? (Assume that a deposit is made in December of 2012. Make sure to count the years carefully.)
Answer to relevant QuestionsAt a growth (interest) rate of 10 percent annually, how long will it take for a sum to double? To triple? Select the year that is closest to the correct answer.Determine the amount of money in a savings account at the end of 10 years, given an initial deposit of $5,500 and a 12 percent annual interest rate when interest is compounded (a) Annually, (b) Semiannually, (c) Quarterly.On January 1, 2011, Mr. Dow bought 100 shares of stock at $14 per share. On December 31, 2013, he sold the stock for $20 per share. What is his annual rate of return? Interpolate to find the answer.If you borrow $9,441 and are required to pay back the loan in five equal annual installments of $2,750, what is the interest rate associated with the loan?How does the modified internal rate of return include concepts from both the traditional internal rate of return and the net present value methods?
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