Question: I need help i tried and im getting it wrong 1) Lin Jones deposits $5,400 today in a savings account for 3 years at an
1) Lin Jones deposits $5,400 today in a savings account for 3 years at an annual interest rate of 12%. a. What is the amount of interest earned and maturity value assuming simple interest? b. What is the amount of interest and maturity value assuming interest compounds annually? (Use tables in the textbook) C. What is the amount of interest and maturity value assuming interest compounds quarterly? (Use tables in the textbook) 2) Sylvie Santiago deposits $2,400 in a 2-year Certificate of Deposit that earns 8% interest. a. What is the amount that Sylvie will receive at the end of 2 years if interest is compounded daily? (Use the compounding Interest Daily table) b. What is the amount Sylvie will receive if instead the interest is compounded quarterly? (Use the Future Value of $1 table) 3) Travis Prescott is planning for the future and estimates he will need $25,000 as a down payment on a house that he plans to buy in 4 years. He can earn 6% compounded semi- annually in his current money market account. What amount does Frankie need to invest now to have $25,000 at the end of 4 years? Use the Present Value of $1 table)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
