Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(4 points) On September 17, 2020, Rachel deposits $24000 in a savings account that earns a nominal annual interest rate of 12% compounded semi-annually and

image text in transcribedimage text in transcribed

(4 points) On September 17, 2020, Rachel deposits $24000 in a savings account that earns a nominal annual interest rate of 12% compounded semi-annually and $24000 in a savings account that earns an effective annual interest rate of 6%. a) What will the combined balance of Rachel's accounts be on September 17, 2026? Answer $ b) How long will it take for the combined balance of Rachel's accounts to accumulate to $144000? Answer years. Click for a hint (5 points) On January 1, 2010, Adele invested $450000. The following table shows her average annual rate of return over several periods, each ending on January 1, 2020: 1-year 2-year 5-year 10-year 6.1% 2% 5% 6% a) Find the balance of Adele's portfolio on January 1, 2020. Answer = $ b) Find the balance of Adele's portfolio on January 1, 2015. Answer = $ Click for a hint c) Find Adele's average annual rate of return for the 3-year period from January 1, 2015 until January 1, 2018. Answer = %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions