Question
I need only answers within an hour (1) You deposit $1000 into a savings account that is compounded daily. At the end of 2 years,
I need only answers within an hour
(1) "You deposit $1000 into a savings account that is compounded daily. At the end of 2 years, you have $1078.96 in the account. Assuming you only have made that single deposit and you made no withdrawals, what is the nominal interest rate for this savings account? Assume 365 days per year. Enter your answer as a percentage between 0 and 100."
(2) Republic Finance offers money at 1.82% per month compounded monthly. What is the effective annual interest rate? Express your answer as a percentage between 0 and 100.
(3) "Suppose that $5,400 is placed in a bank account at the end of each quarter over the next 11 years. What is the future worth at the end of 11 years when the interest rate is 10.7% compounded monthly?"
(4) Republic Finance offers money at 1.06% per month compounded monthly. Assume Republic Finance changes to continuous compounding but decides to keep the ANNUAL NOMINAL INTEREST rate the same as with the monthly compounding. How many years will it take for an investment to quadruple with this continuous compounding? (Your answer can be a decimal.)
(5) "To purchase a new car, you borrow $26,000 for 6 years at the rate of interest of 12.7% APR compounded monthly, and you make monthly car payments. How much interest do you pay on the 14th payment?"
(6) "You are borrowing $18,000 at a nominal rate of 7% compounded monthly for 40 months. What is the balance of your loan immediately after your 7th payment?"
(7) "You receive a loan for $6,745 where the APR is 6%, compounded monthly. You make a payment of $361.12 on this loan every 6 months (i.e., 2 payments per year), which will enable you pay off the loan in eactly 14 years. Immediately after making your regular payment at the end of 8 years, you desire to pay the remainder of the loan in a single payment. Compute the amount you must pay for the remainder of the loan."
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