This topic contains a solution. Click here to go to the answer

Author Question: You deposit $100 in a bank for a fixed 7 year term. Interest on the deposit is calculated every ... (Read 72 times)

lindiwe

  • Hero Member
  • *****
  • Posts: 577

Question 1

What is the future value of the following cash flows in year 5 with an interest rate of 6%?

YearCash Flow
1$200
2$400
3$600
4$800
5$1000

◦ $3,251.06
◦ $3,446.13
◦ $3,067.04
◦ $3,000.00
◦ $3,180.00

Question 2

You deposit $100 in a bank for a fixed 7 year term. Interest on the deposit is calculated every half-year (m = 2) at the rate of 5% per half-year (i/m = 5%). Because the term is fixed, you are not allowed to withdraw interest at any point. You earn interest in the final compounding period of the term. How much of that interest is earned off of earlier interest (as opposed to earned off of the principal)?
◦ $4.43
◦ $9.43
◦ $4.90
◦ $5.00
◦ $9.90


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by lindiwe on Apr 25, 2021

Benayers

  • Sr. Member
  • ****
  • Posts: 328
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 55% of students answer this correctly




lindiwe

  • Member
  • Posts: 577
Reply 2 on: Apr 25, 2021
Gracias!


mochi09

  • Member
  • Posts: 335
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

For a complete list of videos, visit our video library