You decide to place $12,000 on deposit for 4 years. The bank offers you 6 percent compounded

Question:

You decide to place $12,000 on deposit for 4 years. The bank offers you 6 percent compounded annually.

a. What is the total amount of money in the account at the end of 4 years?

b. What value of simple interest would be necessary to have the same amount of money in the account at the end of 4 years?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Principles Of Engineering Economic Analysis

ISBN: 9781118163832

6th Edition

Authors: John A. White, Kenneth E. Case, David B. Pratt

See More Books

Question Posted: Mar 26, 2024 01:02 AM

See More Questions

Please do the full calculation through the financial calculator formula as per the Australian standards Question 1 (Total marks for this question = 6 marks) Suppose you take out a loan of $10,000,...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
Sue decided to invest the $1500 in savings from her part-time job into a 6 month short-term investment account at the bank. The account earns 4.5% simple interest per year. a) What is the accumulated...
List the following numbers in numerical order, starting with the smallest: 1, 9, , 5, |8| , |3|, 3.1.
This problem is a continuation of Problem 10-3 in Chapter 10 focusing on depreciation. In P 10-3 The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances...
For the following highway network system, determine the maximal flow in vehicles per hour: The highway commission is considering adding highway section 34 to permit a flow of 2000 vehicles per hour...
Use the Hubble expansion relation (9.1.1), the temperature scaling relation (9.1.3), and the energy density relation before the electron-positron annihilation (9.3.6b) to show that the temperature as...
The citizens of Spencer County approved the issuance of $2,000,000 in 6 percent general obligation bonds to finance the construction of a courthouse annex. A capital projects fund was established for...
Using Doug Melville's checklist from his TEDx Talk evaluate which of his recommendations for improving diversity awareness are most useful to business leaders, and why.
If Kathy borrows $11,000 to remodel her beach house at 7 percent compounded annually for 5 years, what is the principal, the interest, and the final amount paid if all are paid at the end of year 5?
For each of the parts below, you want to withdraw $8,000 from an account at the end of 10 years. a. What single sum of money must you deposit today if the account earns 8 percent compound interest?...
Explain the position of substitution observed in the bromination of thiophene-3-carboxylic acid shown in Eq. 26.18. Draw the arenium ion intermediates for all possible positions of substitution and...
Congress has the power to establish administrative agencies to perform which of the following functions? a. Make administrative rules. b. Adjudicate disputes arising from administrative rules. c....
What forms of anticompetitive behavior does the Federal Trade Commission Act prohibit?
When does price discrimination violate antitrust laws?
Define monopolization.
Describe the rule of reason.
A pistoncylinder device contains an ideal gas. The gas undergoes two successive cooling processes by rejecting heat to the surroundings. First the gas is cooled at constant pressure until T2 = 34 T1....
You continue to work in the corporate office for a nationwide convenience store franchise that operates nearly 10,000 stores. The per- store daily customer count (i.e., the mean number of customers...
In a swimming competition, the 200-meter medley relay is an event in which four different swimmers each swim 50 meters using one of four different strokes: backstroke, breast stroke, butterfly, and...
Determine the formula to calculate the overhead costs allocated to each service. Next, calculate the indirect costs allocated to each service. (Do not round until the final amount; then round the...
Suppose a group of ducks (known as a raft) are categorized into three life stages: eggs, hatchlings, ducks. Assume the number of each type can be modeled as follows: 30% of the eggs at t = n hatch...

You decide to place $12,000 on deposit for 4 years. The bank offers you 6 percent compounded

Question:

Step by Step Answer:

a To calculate the total amount of money in the account at the end of 4 years with 6 percent interes...View the full answer

Principles Of Engineering Economic Analysis

Students also viewed these Business questions