To establish a rainy day cash reserve account, a certain company deposits $11,000 of its profit...

 

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To establish a "rainy day" cash reserve account, a certain company deposits $11,000 of its profit at the end of each quarter into a money market account that pays 1.55% interest compounded quarterly. (Round your answers to the nearest cent.) (a) How much (in $) will the account be worth in 4 years? $ 1 (b) How much (in $) will the account be worth in 5- 2 $ years? To establish a "rainy day" cash reserve account, a certain company deposits $11,000 of its profit at the end of each quarter into a money market account that pays 1.55% interest compounded quarterly. (Round your answers to the nearest cent.) (a) How much (in $) will the account be worth in 4 years? $ 1 (b) How much (in $) will the account be worth in 5- 2 $ years?

Answer rating: 100% (QA)

To calculate the future value of the account we can use the formula for compound interest A P left1 ... View the full answer