3. An investor deposits $5000 in an account paying 4% interest compounded annually. Two years later...

 

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3. An investor deposits $5000 in an account paying 4% interest compounded annually. Two years later she deposited $2000 into the same account. How much money was there at the end of 5 years? 4. One bank advertises an interest rate of 6.3% compounded monthly on a CD. Another bank advertises an interest rate of 6.25% compounded continuously. Find the APY for each account. Round to the nearest hundredth of a percent. Which bank will pay more interest in one year on your deposit? 5. You have accumulated $500,000 in your retirement account. You now retire and plan to withdraw only the interest earned each year as a salary for yourself. a) The account pays 4% interest compounded quarterly. How much will you that salary be? Round to nearest dollar b) The account pays 4% interest compounded continuously. How much will you that salary be? Round to nearest S. 6. Your car needs repair, and Uncle Vinny has offered to pay for the repairs. However, Uncle Vinny expects to be paid back. He loans you $1150 at 3% annual simple interest. He wants his money back in 6 months (note this is a fraction of a year). How much interest will you pay to Uncle Vinny? 3. An investor deposits $5000 in an account paying 4% interest compounded annually. Two years later she deposited $2000 into the same account. How much money was there at the end of 5 years? 4. One bank advertises an interest rate of 6.3% compounded monthly on a CD. Another bank advertises an interest rate of 6.25% compounded continuously. Find the APY for each account. Round to the nearest hundredth of a percent. Which bank will pay more interest in one year on your deposit? 5. You have accumulated $500,000 in your retirement account. You now retire and plan to withdraw only the interest earned each year as a salary for yourself. a) The account pays 4% interest compounded quarterly. How much will you that salary be? Round to nearest dollar b) The account pays 4% interest compounded continuously. How much will you that salary be? Round to nearest S. 6. Your car needs repair, and Uncle Vinny has offered to pay for the repairs. However, Uncle Vinny expects to be paid back. He loans you $1150 at 3% annual simple interest. He wants his money back in 6 months (note this is a fraction of a year). How much interest will you pay to Uncle Vinny?

Answer rating: 100% (QA)

3 50001042 2000 6120 50001043 2000 624448 50001044 2000 637179 50001045 2000 650206 therefore the money that was there at the end of 5years 6502064 4 ... View the full answer