A) You have $4,800 that you want to invest for 4 years. You can invest this...

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A) You have $4,800 that you want to invest for 4 years. You can invest this amount at a finance company and earn 4 percent simple interest. Or, you can open an account at Compass Bank and earn 3.65 percent interest, compounded annually. Which financial institution you should put in the deposit? Explain. (10 marks) B) Twelve years ago, you deposited $3,400 into an account. Seven years ago, you added an additional $1,000 to this account. 8 percent interest was compounded annually for the first 5 years. Then, 5.5 percent interest was earned with annual compound interest for the last 7 years. How much money do you have in your account today? (10 marks) C) You plan to save $40 a week for the next five years. You expect to earn 3 percent for the first two years and 5 percent for the last three years. How much will your savings be worth at the end of the five years? (10 marks) A) You have $4,800 that you want to invest for 4 years. You can invest this amount at a finance company and earn 4 percent simple interest. Or, you can open an account at Compass Bank and earn 3.65 percent interest, compounded annually. Which financial institution you should put in the deposit? Explain. (10 marks) B) Twelve years ago, you deposited $3,400 into an account. Seven years ago, you added an additional $1,000 to this account. 8 percent interest was compounded annually for the first 5 years. Then, 5.5 percent interest was earned with annual compound interest for the last 7 years. How much money do you have in your account today? (10 marks) C) You plan to save $40 a week for the next five years. You expect to earn 3 percent for the first two years and 5 percent for the last three years. How much will your savings be worth at the end of the five years? (10 marks)

Answer rating: 100% (QA)

A 1 Finance company with 4 percent simple interest Final amount Principal Principal Interest rate Time 4800 4800 004 4 4800 768 5568 2 Future Value wi... View the full answer