You deposit $10,000 in an account that earns 5.5% compounded continuously and your friend deposits $10,000 in

Fantastic news! We've Found the answer you've been seeking!

Question:

You deposit $10,000 in an account that earns 5.5% compounded continuously and your friend deposits $10,000 in an account that earns 5.5% annually.

a. How much more will you have in the account in 10 years?
b. How much more interest did you earn in the 10 years?

Related Book For answer-question

Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

See More Books

Posted Date: Feb 28, 2024 07:30 AM

See More Questions

1 $5,000.00 deposited in an account earning 6.5%, for 8 years. Calculate the balance in 8 years. a. 8,274.98 b. 8,752.83 c. 8,917.39 d 9,235.36 A firm has net sales of $5,700,000, Cost of Goods Sold...
3The firm's Operating Margin is a.17.8% b.21.8% c.24.6% d26.9% 4The firm's Gross Profit Margin is a.32.0% b.34.2% c.36.4% d38.6% 5The firm's Pre-taxable Income is a.1,200,000 b.1,000,000 c.800,000...
Calculate all of the problems in the document below in an Excel spreadsheet or on a financial calculator. Please show your work in order to get credit. For each problem, state the inputs given, what...
Assuming 10% minimum required reserve ratio, 5% excess reserve ratio, and people holding 10% of cash received at home (not deposited in the banks), the money multiplier is equal to Select one: a....
Are data that can be paired independent or dependent?
P Company owns 90% of the outstanding common stock of S Company. On January 1, 2012, S Company sold land to P Company for $600,000. S Company originally purchased the land for $400,000. On January 1,...
Plaintiff sought to enforce against the defendant estate a promise made by his now-deceased uncle to pay Plaintiff a sum of money if Plaintiff refrained from the use of alcohol and tobacco for a...
The cash account for Ambulance Systems at February 29, 2012, indicated a balance of $20,580. The bank statement indicated a balance of $24,750 on February 29, 2012. Comparing the bank statement and...
Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding 2,500 $ 12,000 $ 2.20 Fabrication 1,500 $ 16,200 $...
The marketing manager in your department just read a story about the rapid growth Snapchat, a relatively new social media app. Because your company sells fashion items to women in the 18 to 34yearold...
The following information was established concerning the centers constructed: 1. Only three (3) of the centers met the design specifications and were going to be commissioned for use. The work on the...
1.What is the cost of equity for firm ABC? 2.What is the cost of capital for firm ABC? 3.What is the cost of assets, rA for firm ABC? ABC, INC Income Statement Year 0 Year -1 Total Revenue 31,944...
The manager of Chayim, Inc. reviewed the year just completed, hoping to establish a point of comparison for measuring the company's actual performance. Sales volume came in lower than expected, at...
George purchased three stocks (Stock X, Stock Y, and Stock Z) as investments on December 31, 20x1. He sold Stock X on December 31, 20x2, Stock Y on January 1, 20x3, and Stock Z on January 2, 20x3....
Luna is an active mutual fund manager. She uses a binomial model to estimate a price target for three stocks that she currently owns. Here are the price targets and market prices for each stock:...
Supermarket Checkout Lines Simulation, c++ This problem requires you to develop a c++ program that processes incoming customers at your favorite supermarkets checkout counters. The goal of the...
Repeat the previous problem, but close the positions on September 20. Use the spreadsheet to find the profits for the possible stock prices on September 20. Generate a graph and use it to identify...
It has been determined that, in aggregate, financial institutions with depository accounts currently hold excess reserves equal to $3 billionthat is, they hold $3 billion more than is necessary to...
The accounts payables of Mommas Baby, Inc. generally equal $1.6 million. If the turnover of accounts payables is 20, what is its (a) Payables deferral period (DPO) (b) Annual credit purchases?
Suppose a firm invest in projects that are much riskier than its average investments. Do you think the firms weighted average cost of capital will be affected? Explain
Tedesco Company changed depreciation methods in 2015 from double-declining-balance to straight-line. Depreciation prior to 2015 under double-declining-balance was $90,000, whereas straightline...
Sesame Company purchased a computer system for 74,000 on January 1, 2013. It was depreciated based on a 7-year life and an 18,000 residual value. On January 1, 2015, Sesame revised these estimates to...
Goring Dairy leases its milking equipment from King Finance Company under the following lease terms. 1. The lease term is 10 years, non-cancelable, and requires equal rental payments of 30,300 due at...

You deposit $10,000 in an account that earns 5.5% compounded continuously and your friend deposits $10,000 in

Question:

Expert Answer:

Continuous vs Annual Compounding a How much more will you have in the account in 10 years Continuous... View the full answer

Principles of Finance

Students also viewed these finance questions