What is the annual simple interest rate if $265 is earned in 4 months on a initial
Question:
What is the annual simple interest rate if $265 is earned in 4 months on a initial investment of $15,000?
b) For a compound interest rate of 10% per annum, what is the smallest amount of money that should be invested today over a two-year period in order to earn $300 in interest?
c) How many years will it take for an investor to double their money if the interest rate compounded annually is 10%?
d) An individual invests $1000 in a bank account which pays an interest rate simple annual rate of 12% for 4 years. At the end of these 4 years, he invests the sum accrued at an annual compound interest rate of 8% for 10 years. At the end of 14 years old, how much money would he have accumulated?
e) Five different annual deposits ($1200, $1000, $800, $600, and $400) are made into a fund bearing interest at a rate of 9% compounded annually. Determine the balance this fund immediately after the 5th deposit.
Expert Answer:
a To calculate the annual simple interest rate we need to convert the 4month interest earned to an annual rate First we calculate the monthly interest ... View the full answer
