18. Make another table. Suppose you put $4000 in a savings account at an APR of...
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18. Make another table. Suppose you put $4000 in a savings account at an APR of 6% compounded monthly. Fill in the table below. (Calculate the interest and compound it each month rather than using the compound interest formula.) Month 1 2 3 Interest earned $ $ $ $4000.00 $ $ Balance 19. Compound interest calculated. Assume that we invest $2000 for one year in a savings account that pays an APR of 10% compounded quarterly. a. Make a table to show how much is in the account at the end of each quarter. (Calculate the interest and compound it each quarter rather than using the compound interest formula.) b. Use your answer to part a to determine how much total interest the account has earned after one year. c. Compare the earnings to what simple interest or semi-annual compounding would yield. 18. Make another table. Suppose you put $4000 in a savings account at an APR of 6% compounded monthly. Fill in the table below. (Calculate the interest and compound it each month rather than using the compound interest formula.) Month 1 2 3 Interest earned $ $ $ $4000.00 $ $ Balance 19. Compound interest calculated. Assume that we invest $2000 for one year in a savings account that pays an APR of 10% compounded quarterly. a. Make a table to show how much is in the account at the end of each quarter. (Calculate the interest and compound it each quarter rather than using the compound interest formula.) b. Use your answer to part a to determine how much total interest the account has earned after one year. c. Compare the earnings to what simple interest or semi-annual compounding would yield.
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For part 19a heres the table showing the balance at the end of each quarter for an initial deposit o... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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