Question: Derek can deposit $ 2 6 1 . 0 0 per month for the next 1 0 years into an account at Bank A .

Derek can deposit $

261.00

per month for the next

10

years into an account at Bank A

.

The first deposit will be made next month. Bank A pays

14.00 %

and compounds interest monthly. Derek can deposit $

2, 411.00

per year for the next

10

years into an account at Bank B

.

The first deposit will be made next year. Bank B compounds interest annually. What rate must Bank B pay for Derek to have the same amount in both accounts after

10

years?

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!

1.A security pays you an annual amount of $900 for 10 years. The seller of the security requires the first payment to be made today and the last payment to be made 9 years from today. Interest rate...

An investment promises to pay into an account that pays you 6 percent annually, $150 per month for the next twenty-two years. Suppose the first deposit into the account is made one month from today...

I really need help on how to do a journal entry out of this information for my practice set part one in accounting. I am not sure where I input the entries. Any help would be greatly appreciated...

Dorsey Landscape , Inc Accounting Transactions for the Period of April 1 2016 - April 30 2018 Description April 1 2016 The stockholders purchase 7 500 shares of $10 par value stock Total cash...

1 pts Question 1 Question 6 Time Elapsed: Hide Attempt due: Sep 11 at 11:59pm O Minutes, 11 Seconds You need to fund a payment of $25,614 due in 14 months. If your investment account pays 3.74% APR...

1. A security pays you an annual amount of $900 for 10 years. The seller of the security requires the first payment to be made today and the last payment to be made 9 years from today. Interest rate...

1- If you save $85 at the beginning of every month for eleven years, for how long can you withdraw $280 at the beginning of each month starting eleven years fromnow, assuming that interest is 6%...

Your retirement account has a current balance of $ 4 5 , 0 0 0 . If you add $ 2 0 0 per month for the next 1 0 years with the first payment occurring 1 month from today, how much will you have in...

PRACTICE NUMBER 5 I NEED HELP below. Chart of Accounts Current Assets 10000 Cash ma 11000 Accounts Receivable 12000 Inventory-Orange Roller Blades 12100 Inventory - Black Roller Blades 13100 Office...

In this part of the parctice set, the student will prepare a Bank Reconciliation for the month of January. Start by using the ending balance in your cash account for the cash for your books and the...

Par inventory systems do not work well for perishable foods Thus, items such as fresh pastries and dairy products are typically purchased in quantities that relate more to forecasted occupancy levels...

A ball moves in a straight line (the x-axis). The graph in Fig. 2.33 shows this ball's velocity as a function of time. (a) What are the ball's average speed and average velocity during the first 3.0...

Which of the following are money market instruments? Check all that apply. Preferred stocks Common stocks Commercial paper Treasury bills Long - term bank loans

Discuss the policy statement concept and identify three focus areas / procedures where a clearpolicy statement / operating procedure

What change agent skills are necessary for helping a dysfunctional group become more effective? What if the problems exist between managers? What happens if they refuse the help of the change agent?

In terms of cultural diversity, what changes, if any, have you personally experienced in the workplace? What needs to be done to ensure that all individuals (including women and minorities) have...

Describe the role of HRD professionals with respect to managing culturally diverse employees. What kinds of HRD programs support this approach?