Question: A bank pays 6 % interest annually on savings, compounding the interest yearly. If we deposit $1000, how much will this deposit be worth 12

A bank pays 6 % interest annually on savings, compounding the interest yearly. If we deposit $1000, how much will this deposit be worth 12 years later?

NB: USE RECURRENCE RELATION NOT COMPOUNDED FORMULA

Step by Step Solution

★★★★★

3.32 Rating (146 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

By using the recurrence relation we have the following Annual Interest ... View full answer

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 Mathematics Questions!

A bank pays 6 % interest annually on savings, compounding the interest yearly. If we deposit $1000, how much will this deposit be worth 12 years later? Use the recurrence expression formula to solve...

A bank pays 6 % interest annually on savings, compounding the interest yearly. If we deposit $1000, how much will this deposit be worth 12 years later?

Bank A pays 7.25 percent interest compounded semi-annually, Bank B pays 7.20 percent compounded quarterly, and Bank C pays 7.15 percent compounded monthly. Which bank pays the highest effective...

You invest $15,000 at 6% interest, compounded monthly, for 2 years. Use the compound interest formula to calculate the compound amount (in $) for your investment. (Round your answer to the nearest...

Hello please answer to the following question. good luck 29. Annuities. You can buy a car that is advertised for $24,000 on the following terms: (a) pay $24,000 and receive a $2,000 rebate from the...

Need help with these discussion postings (in a document) and assignments (all in separate files), all directions are included as well. FINANCE DIRECTIONS Need to provide 1 original post substantial...

MATH 21 PRACTICE TEST Chapters 5 & 8 Instructor Bronie Name 1. Jones borrows $500 for 3 years at 6% simple interest (annual rate). How much interest will be paid? Answer 2. Matt paid $1 15.50...

Bill Anderson buys an automobile every 2 years at follows: initially he makes a down payment of $600C on a $15,000 car. The balance is paid in 24 equal monthly payments with annual interest at 12%....

Universal Bank pays 7% interest, compounded annually, on time deposits. Regional Bank pays 6% interest, compounded quarterly. a. Based on effective interest rates, in which bank would you prefer to...

Bill Anderson buys an automobile every 2 years aa follows: initially he makes a down payment of $6000 on a $15,000 car. The balance is paid in 24 equal monthly payments with annual interest at 12%....

All of the following are reasons why Training and Exercise Planning Workshops (TEPWs) are conducted except: A. Procure grant funding B. Review each jurisdiction's progress and accomplishments over...

According to a recent poll, 25% of adults in a certain area have high levels of cholesterol. They report that such elevated levels "could be financially devastating to the regions healthcare system"...

The balanced scorecard provides a picture of the company from the perspective of internal and external customers, employees, and shareholders in terms of satisfaction, innovations, and profitability....

The following events occurred for Favata Company: a. Received $11,500 cash from owners and issued stock to them. b. Borrowed $8,500 cash from a bank and signed a note due later this year. c. Bought...

The head of the accounting department at a major software manufacturer has asked you to put together a pro forma statement of the company's value under several possible growth scenarios and the...

Mrs. Porter's mother is a feisty, independent 86-year-old widow by the name of Mary Brown. Mary Brown still lives in her own home, with a few hours of home support twice a week. Mary comes into the...

Single Pluswide Factory Overhead Rate If required, raund all per-case answers to the newest cent. per procrusing hour

For the following exercises, write the first four terms of the sequence. a n = 2 n 2

Which of the following are vector spaces? Justify your answer! (a) The set of all row vectors of the form (a, 3a). (b) The set of all vectors of the form (a, a + 1). (c) The set of all continuous...

Diagonalize the rotation matrices (a) (b) 001 0 010 0-0

Verify that the Gram-Schmidt formulae (5.19) also produce an orthogonal basis of a complex vector space under a Hermitian inner product. 1 (5.19)

An experiment to compare the spreading rates of five different brands of yellow interior latex paint available in a particular area used 4 gallons of each paint. The sample average spreading rates...

Six samples of each of four types of cereal grain grown in a certain region were analyzed to determine thiamin content, resulting in the following data (mg/g): Wheat 5.2 4.5 6.0 6.1 6.7 5.8 Barley...

The article Origin of Precambrian Iron Formations (Econ. Geology, 1964: 10251057) reports the following data on total Fe for four types of iron formation ). 1: 20.5 28.1 27.8 27.0 28.0 25.2 25.3 27.1...