Suppose you want to earn an effective rate of 12% and you are looking at an...

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•Suppose you want to earn an effective rate of 12% and you are looking at an account that compounds on a monthly basis. What APR must they pay? Multiple Cash Flows You think you will be able to deposit $4,000 at the end of each of the next three years in a bank account paying 8 percent interest. • You currently have $7,000 in the account. • How much will you have in 3 years? . • How much in 5 years? Multiple Cash Flow Example 1 • If you deposit $100 in one year, $200 in two years and $300 in three years. • How much will you have in three years at 7 percent interest? • How much in five years if you don't add additional amounts? •Suppose you want to earn an effective rate of 12% and you are looking at an account that compounds on a monthly basis. What APR must they pay? Multiple Cash Flows You think you will be able to deposit $4,000 at the end of each of the next three years in a bank account paying 8 percent interest. • You currently have $7,000 in the account. • How much will you have in 3 years? . • How much in 5 years? Multiple Cash Flow Example 1 • If you deposit $100 in one year, $200 in two years and $300 in three years. • How much will you have in three years at 7 percent interest? • How much in five years if you don't add additional amounts?

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Answer 1 We have Effective rate12 compounded monthly Formula Or Or Or Or Or Or Method 2 Effec... View the full answer