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- You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.If you borrow $9000 at an annual percentage rate (APR) of r (as a decimal) from a bank, and if you wish to pay off the loan in 3 years, then your monthly payment M (in dollars) can be calculated using: M = 9000 (er/12-1) / 1 - e-3r 1) Describe what M (0.035) would represent in terms of the loan, APR, and time. 2) If you are only able to afford a max monthly payment of $300, describe how you could use the above formula to figure out what the highest interest rate the bank could offer you and you would still be able to afford the monthly payments. In addition, determine the maximum interest rate that you could afford.Q)The Central Bank pays 3.6% compounded monthly on certain types of deposits. What is the effective annual rate of interest? Note: to receive the full mark, you will keep all 8 decimal places when performing calculations, express your final answer in percentage with 8 decimal places, and there is no need to include any symbols such as % in your final answer. Solve this economic
- Suppose you borrow from a bank $1,756.06 today (t=0). You agree to pay back $3,637.64 in 4 years (t=4). The interest rate (%) that the bank charge you is closest to ________%. Input your answer without the % sign and round your answer to two decimal places.Determine the interest rate earned on a $2,300 deposit when $2,600 is paid back in one year. (Round your answer to 2 decimal places.)For a $ 1,314 deposit, a bank offers two choices: Account "A" pays interest at an APR of 8.3%. Account "B" pays an APR of 3.8 %, but pays a one-time bonus of $80 at the end of 2 years. What is the final value of account "A" minus the final value of account "B'? Please calculate accurately and round the answer to four decimal places. Thank you.
- If you deposit $700 in a bank account that earns 5 percent per year, how much total interest will you have earned after the third year? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Total Interest =Suppose you deposit $1,751.00 into an account today that earns 5.00%. It will take ___ years for the account to be worth $2,806.00. Answer format: Number: Round to: 2 decimal places.Q)The Central Bank pays 3.6% compounded monthly on certain types of deposits. What is the effective annual rate of interest? Note:- you will keep all 8 decimal places when performing calculations, express your final answer in percentage with 8 decimal places, and there is no need to include any symbols such as % in your final answer.
- 2. Using the formula which is attached below, calculate the Future Value of disposable amount of money (5 000 CZK), if you can expect to earn 5% interest compounded annually on that money for the next two years. Prior to calculation fill in the table gaps. manually using TVM functions Principal Interest rate Time period Compounding frequency Total number of compounding periods Future value of money Future value of money (EUR) (as a decimal) (number of years) (times per year) (EUR) (EUR) 5,000 0.05 2 1 2 5,512.50 5,512,50b) If the same two $15,000 deposits are made (at time 0 and end of year 4) into a different account that earns a nominal annual interest rate of 8.4% compounded quarterly, in which account should the money be deposited in order to earn more interest?Your bank pays an interest rate quoted as 5.0% per annum compounded semi-annually. You invest $1,000 into the bank now for a 5 year period. What will your balance be after 5 years? (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.)