3. Meadow Company wants to invest its net profits of $80,000 for 6 years in either...

Transcribed Image Text:

3. Meadow Company wants to invest its net profits of $80,000 for 6 years in either a credit union or a local bank. The credit union provides interest of 7.53% compounded monthly, while the local bank provides interest of 7.66% compounded semi-annually. Calculate the maturity value of the investment with: a. Credit Union: Round to the nearest cent b. Local Bank: Round to the nearest ceit c. Which of the two options will yield the highest returns? a. Credit Union b. Local Bank 4. What amount invested today would yield $205,000 in 11 years if it were invested at 3.87% compounded semi-annually? Round to the nearest cent 5. If you want to have a million dollars 32 years from today, how much should you invest in your savings account that earns interest of 2.06% compounded monthly? Round to the nearest cent 3. Meadow Company wants to invest its net profits of $80,000 for 6 years in either a credit union or a local bank. The credit union provides interest of 7.53% compounded monthly, while the local bank provides interest of 7.66% compounded semi-annually. Calculate the maturity value of the investment with: a. Credit Union: Round to the nearest cent b. Local Bank: Round to the nearest ceit c. Which of the two options will yield the highest returns? a. Credit Union b. Local Bank 4. What amount invested today would yield $205,000 in 11 years if it were invested at 3.87% compounded semi-annually? Round to the nearest cent 5. If you want to have a million dollars 32 years from today, how much should you invest in your savings account that earns interest of 2.06% compounded monthly? Round to the nearest cent

Answer rating: 100% (QA)

a Credit Union for Monthly compaundi... View the full answer