You deposit $ 1,000 in your bank account. a. If the bank pays 4% simple interest, how

Question:

You deposit $ 1,000 in your bank account.
a. If the bank pays 4% simple interest, how much will you accumulate in your account after 10 years?
b. How much will you accumulate if the bank pays compound interest?

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

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

See More Books

Question Posted: Jun 30, 2016 09:10 AM

See More Questions

You deposit $1,000 into your bank account. If the bank pays 4% simple interest, how much will you accumulate in your account after 10 years? If the bank pays compound interest, how much of your...
You deposit $3,500 into an account every year for 6 years. The account pays 7% interest. How much will you have at the end of that time?
If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years?
Exercises 11-16: For the measured quantity, state the set of numbers that most appropriately describes it. Choose from the natural numbers, integers, and rational numbers. Explain your answer....
Draw a tree diagram to illustrate what the market shares would be next month for Problem 15-10.
A professor tests whether the loudness of noise during an exam (low, medium, high) is independent of exam grades (pass, fail). The following table shows the observed frequencies for this test. (a)...
A car merges onto a freeway, accelerating from $60 \mathrm{~km} / \mathrm{h}$ to $80 \mathrm{~km} / \mathrm{h}$. As it does this, a bus passes by in the fast lane, travelling at a constant \(100...
A firm experienced the demand shown in the following table. a. Fill in the table by preparing forecasts based on a five-year moving average, a three-year moving average, and exponential smoothing...
16. A signal containing multiple frequencies is shown in figure A. It is passed through 2 different filters and then outputs are shown in figure B & C. M (A) S (B) sha (C) (a) B corresponds to low...
A wet t-shirt hung on a hanger has a total surface area of about 0.6 m2 . It loses water as follows: time (min) 0 5 33 45 weight (g) 661 640 580 553 Calculate the flux of water vapor away from the...
In a discount interest loan, you pay the interest payment up front. For example, if a I-year loan is stated as $10,000 and the interest rate is 10%, the borrower "pays" .10 x $10,000 = $1,000...
Banks sometimes quote interest rates in the form of "add-on interest." In this case, if a 1 -year loan is quoted with a 20% interest rate and you borrow $ 1,000, then you pay back $1,200. But you...
For each of the following oxides, state whether the compound is acidic, basic, or amphoteric. (a) CuO; (b) P 2 O 3 ; (c) ClO 2 ; (d) GeO 2 .
In 2018, the population in Richardson, Texas was 120,981. Assume that the population is growing at a rate of 3% each year. What is the expected population in 5 years? Round to the nearest person...
draw a scenario that can be represented by multiprocessing operating system, multitasking operating system, distributed operating system and spooling..
Can also come up with similar questions those are just the ones example. Imagine you work at this company when asking these questions how do you think management would answer these question, Company-...
Briefly describe the content of debit entry and credit entry?
Dwight K. Schrute is a married 54 year old (SSN 546-57-1111) residing at 15 Beets Way, Scranton, PA 18504. Dwights wife is Angela E. Schrute (52 years old, SSN 331-24-6363). Dwight and Angela have...
Find the directional derivative of f at the given point in the indicated direction. f(x, y) = x 2 e y , (2, 0), in the direction toward the point (2, 3)
Cassandra Casey operates the Futuristic Antique Store. She maintains subsidiary ledgers for accounts payable and accounts receivable. She presents you with the following information for October 2019:...
If you earn 8% per year on your bank account, how long will it take an account with $ 100 to double to $200?
Suppose you can borrow money at 8.5% per year (APR), compounded semi-annually or 8.4% per year (APR) compounded monthly. Which is the better deal?
Investments in the stock market have increased at an average compound rate of about 5% per year since 1900. a. If you invested $ 1,000 in the stock market in 1900, how much would that investment be...
A home-based sign company uses this function to model its monthly profit, where x is the price of each sign it sells. p(x)=-10x^(2)+498x-1,500 What is the company's profit if it sells each sign for...
Based on your analysis of the market data and a comprehensive understanding of the customer and buying processes, write a 2-3 page description of the major segments of the market and the specific...
Suppose that a rectangular lot has a width of x+2 and a length of 4(x-1). Write the perimeter P as a function of x.

You deposit $ 1,000 in your bank account. a. If the bank pays 4% simple interest, how

Question:

Step by Step Answer:

a With simple interest you earn 4 of 1000 or 40 each yea...View the full answer

Fundamentals of Corporate Finance

Students also viewed these Corporate Finance questions