Michael Jacks deposited $500,000 into a bank for 6 months. At the end of that time, he
Question:
Michael Jacks deposited $500,000 into a bank for 6 months. At the end of that time, he withdrew the money and received $520,000. If the bank paid interest based on continuous compounding:
(a) What was the effective annual interest rate?
(b) What was the nominal annual interest rate?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 46% (15 reviews)
a Interest Rate ...View the full answer
Answered By
Joemar Canciller
I teach mathematics to students because I love to share what I have in this field.
I also want to see the students to love math and be fearless in this field.
I've been tutoring these past 2 years and I would like to continue what I've been doing.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
If $2.(XK) is deposited at the end of each quarter for 2 years into an ordinary annuity earning 7.9% compounded quarterly, construct a balance sheet showing the interest earned during each quarter...
-
If $2500 is deposited at the end of each quarter in an account that earns 5% compounded quarterly, after how many quarters will the account contain $80,000?
-
If $4000 is deposited at the end of each half year in an account that earns 6.2% compounded semiannually, how long will it be before the account contains $120,000?
-
A travel softball team is trying to raise funds to go to the Colorado Sparkler, a major summer national tournament. The team is going to sell 3000 raffle tickets for $9 each. The prizes and their...
-
Do all health care organizations and providers need to comply with the Patient's Bill of Rights? Why or why not?
-
Wingman Distributing Company is expanding its supply chain to include a new distribution hub In South Bend. A key decision involves the number of trucks for the facility. The particular model of...
-
A biologist decided that she wanted to have $\$ 54,267.89$ in her account in 10 years, and she found a bank which compounded monthly at $6 \%$. What are her monthly payments to achieve her goal of...
-
The COSO internal control framework identifies five components of an entity's internal control. Which, if any, of those five components of Avon's internal control were flawed? Explain. If there were...
-
Find the area of the triangle having the given measurements. Round to the nearest square unit. 13) C=100, a 3 yards, b = 8 yards Use Heron's formula to find the area of the triangle. Round to the...
-
Mels Photography borrowed $15 000 on March 10 on a demand note. The loan was repaid by payments of $4000 on June 20, $3000 on September 1, and the balance on November 15. Interest, calculated on the...
-
A college professor won $85,000 in the state lottery; income taxes will take about half the amount. She plans to spend her sabbatical year on leave from the university on an around-the-world trip...
-
How long will it take for $10,000, invested at 5% per year, compounded continuously, to triple in value?
-
What is a root cause? How does the Five Why technique help uncover the root cause?
-
The unit vector equation a= has three important variables: a, a and lat. TaT The vector a is represented by lal The magnitude of the vector a is represented by: lal a The unit vector is denoted by:...
-
7. Consider a charged harmonic oscillator in a uniform electric field . The potential energy of this system reads V(x) = mwx 2 Find the energy spectrum and the eigenfunctions for this system. Hint:...
-
A platinum resistance thermometer is calibrated at two fixed points of the ITS-90, namely at the triple point of water (T1=273,160 K, R = 100,500 2) and at the melting point of tin (72=505,078 K. R =...
-
A diatomic ideal gas expands from a volume of VA = 1.00 m to VB = 3.00 m along the path shown in the figure below. The initial pressure is PA = 2.00 x 105 Pa and there are 77.6 mol of gas. P (105 Pa)...
-
In the circuit shown, the current in the R3 resistor is 13 = 5.2 A, and the current in the R resistor is l = 1.0 A, find the current 1. I E1- A. 6.2 A B. 5.2 A C. 2.2 A D. 8.2 A E. 4.2 A R=52 MM R=...
-
You work in Walt Disney Companys corporate finance and treasury department and have been assigned to the team estimating Disneys WACC. You must estimate this WACC in preparation for a team meeting...
-
How has the too-big-to-fail policy been limited in the FDICIA legislation? How might limiting the too-big-to-fail policy help reduce the risk of a future banking crisis?
-
Discuss the effects of a regulation that allows all currently illegal workers to become contributors to Social Security.
-
In the opportunity cost approach to replacement analysis, what does the opportunity refer to?
-
Multiple Choice Questions 1. In conducting a replacement study, all of the following are correct viewpoints for the analyst except: (a) Consultants (b) Owners (c) Outsiders (d) Nonowners 2. A sunk...
-
New pumper system equipment is under consideration by a Gulf Coast chemical processing plant. One crucial pump moves highly corrosive liquids from specially lined tanks on intercoastal barges into...
-
Hall & Company issues $ 1 0 0 , 0 0 0 , 0 0 0 in 6 % bonds with detachable warrants of 1 0 warrants for each $ 1 , 0 0 0 bond. The bonds are issued at 9 9 . Record the issuance under the following...
-
Assume that hein acquired Dolan Development last year. Hein recorded the following intangible assets on the date of acquisition: Goodwill: $ 1 , 5 0 0 , 0 0 0 Dolan Development trademark: $ 6 0 0 , 0...
-
What is the total amount of interest that will be paid of the loan is carried to term with no extra payments made building cost 3 3 0 0 0 0 . loan started im Dec 2 0 2 3 worh a 7 . 5 % interest rate...
Study smarter with the SolutionInn App