Alpha Bank pays interest of 4 percent compoundedannually. Beta Bank pays 4 percent simple interest. Whichone of the following statements is true if you invest $1,000 in each bank forfive years?
举一反三
- Today, you deposit $2,400 in a bank account that pays 4 percent simple interest. How much interest will you earn over the next 5 years?
- Centre Bank pays 2.5 percent interest, compounded annually, on its savings accounts. Country Bank pays 2.5 percent simple interest on its savings accounts. You want to deposit sufficient funds today so that you will have $1,500 in your account 2 years from today. The amount you must deposit today:
- Your bank account pays a nominal interest rate of 6 percent, but interest is compounded daily (on a 365-day basis). Your plan is to deposit $500 in the account today. You also plan to deposit $1,000 in the account at the end of each of the next three years. How much will you have in the account at the end of three years, after making your final deposit? ( ) A: $3,500 B: $3,164 C: $2,591 D: $3,788 E: $3,779
- A security that pays $52.50 in one year and $110.25 in two years, with an interest rate of 5 percent, has a present value of
- With an interest rate of 10 percent, the present value of a security that pays $1,100 next year and $1,460 four years from now is approximately _________