Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Danielle plans to make monthly deposits of $500 into her savings account. The interest rate is 2.4% p.a. compounded monthly for the following two years

image text in transcribed

Danielle plans to make monthly deposits of $500 into her savings account. The interest rate is 2.4% p.a. compounded monthly for the following two years and 3.6% p.a. compounded monthly thereafter. The first deposit will be made in 3 months' time. Danielle will have $X in her bank account 5 years from today immediately after the deposit. Which of the following equations can be used to the find $X (Only one correct answer)? (2 marks) X=500/0.024*(1.024^2-1)*(1.036)^3 +500/0.036*(1.036-3-1) None of the equations give the correct X. X=500/0.002*(1.002-22-1) +500/0.003*(1.003436-1) X=500/0.002*(1.002-24-1)*(1.003)^36 +500/0.003*(1.003436-1) X=500/0.002*(1.002"22-1)*(1.003)^36+500/0.003*(1.003136-1) Calculate X and input your answer below. (Round your answer to 2 decimal places. Do not include the unit. Do not use comma separators. E.g. 1234.56) (1 mark)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Supernatural Provision Living In Financial Freedom

Authors: Joan Hunter, Sid Roth

1st Edition

1641238232, 978-1641238236

More Books

Students also viewed these Finance questions