If you invest $500 today in an account that pays 6 percent interest compounded annually, how much will be in your account after two years?
Answer to relevant QuestionsWhat is the present value of an investment that promises to pay you $1,000 in five years if you can earn 6 percent interest compounded annually?Find the present value of the following ordinary annuities:a. $400 per year for 10 years at 10 percentb. $200 per year for five years at 5 percentBank A pays 8 percent interest, compounded quarterly, on its money market account. The managers of Bank B want the rate on its money market account to equal Bank A’s effective annual rate, but interest is to be compounded ...Find the future values of the following ordinary annuities:a. FV of $400 each six months for five years at a simple rate of 12 percent, compounded semiannuallyb. FV of $200 each three months for five years at a simple rate ...Krystal Magee invested $150,000 18 months ago. Currently, the investment is worth $168,925. Krystal knows the investment has paid interest every three months (i.e., quarterly), but she doesn’t know what the yield on her ...
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