Question: could you answer for both part A and B Suppose you invest $1,250 in an account paying 8% interest per year. a. What is the

could you answer for both part A and B

Suppose you invest $1,250 in an account paying 8% interest per year. a. What is the balance in the account after 3 years? How much of this balance corresponds to "interest on interest"? b. What is the balance in the account after 32 years? How much of this balance corresponds to "interest on interest"? *** a. What is the balance in the account after 3 years? The balance in the account after 3 years is $ 1574.64. (Round to the nearest cent.) How much of this alance corresponds to "interest on interest"? The amount that corresponds to interest on interest is $. (Round to the nearest cent.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Time value of money: a. Consider the following three alternatives. 105 in one year, 120 in 5 years, and 135 in 10 years. Rank the alternatives from most to least valuable if the interest rate is (i)...

Suppose you invest $ 1 050 in an account paying 3 %interest per year a. What is the balance in the account after 3 years? . (Round to the nearestcent.) How much of this balance corresponds...

A) Suppose you take a 9 year loan of $50,000 with an interest rate of 6% and annual payments starting at the end of year 1. What are the annual loan payments? B) If you invest $8,000 into a savings...

- Applications of Definite Integrals Course Packet on income streams and annuities A Math 110 student decides to make semiannual payments of $1,000 into a retirement account paying 8% interest per...

Problem Set 3 - Compound Interest a)You deposit 2000 TL in a bank account paying 8% interest per year. Determine how much interest your investment will earn in 5 years in this account if (i) the...

show work for answers and include timeline Suppose you invest $1000 in an account paying 7% interest per year What is the balance in the account after 3years? how much of this balance correspond...

[-/1 Points] DETAILS MY NOTES Math 110 Course Resources - Applications of Definite Integrals Course Packet on income streams and annuities Suppose you plan to have $50,000 in 20 years from now and...

i do not undertand why the "1854.06" is incorrect. Suppase you invest $750 in an account paying 3% interest per year. a. What is the balance in the account after 3 years? How much of this balance...

ThSuppose you invest $850 in an account paying 4% interest per year. a. What is the balance in the account after 4 years? How much of this balance corresponds to "interest on interest"? b. What is...

All questions please Suppose you will receive payments of $4,000, $2,000, and $1,000 in 2, 5, and 9 year(s) from now, respectively. What is the total present value of this stran of payments of the...

The Wall street Journal (March 12,2007) reported that an analyst with the Center for Financial Research and Analysis found an interesting item in an earnings report from New Century financial...

Problem #4 (36 marks) You have $100,000 available to invest and are considering investing in two stocks Company PING and Company PONG. You consider three possible scenarios for the stocks' returns...

1.29 Use the data in Exercise 1.24 to construct a box plot.

Which of the following are problems with identifying users of ABC? Multiple select question. ABC means different things to different organizations. Organizations will announce the discontinuance of...

3. It appears by the appointment of Dudley that culture has a bearing on sensitivity. What do you think?

2. Think about the balance that is required between technical skill and emotional intelligence; what do you think is more important for a leader?

4. Does cultural aptitude impact ones emotional intelligence?