1.Suppose you decide to deposit $21,000 in a savings account that pays a nommal rate of 16%, but interest is compounded daily. Based on a 365-day year, how much would you have in the account after 12 months?

$24,642.86

$26,121.43

$23,903.57

$25,135.72

2. A local bank's advertising reads: "Give us $35,000 today, and well pay you $600 every year forever." If you plan to live forever, what annual Interest rate will you earn on your deposit?

1.71%

2.74%

1.37%

2.05%

3. Oops! When you went in to make your deposit, the bank representative said the amount of required deposit reported in the advertisement was incorrect and should have read $52,500. This revision, which will reduce the interest rate earned on your deposited funds, will adjust your earned interest rate to.

1.20%

1.14%

1.08%

0.97%

Answer rating: 100% (QA)

1 Money in the account after 12 months 21000 1 016365365 ... View the full answer