9514 1404 393
Answer:
4.9% weekly
Step-by-step explanation:
The compound interest formula is ...
A = P(1 +r/n)^(nt)
where A is the account balance that results from investing P at rate r compounded n times per year for t years.
Filling in the values for the two scenarios, we find ...
A = 10,000(1 +0.04/365)^(365·3) ≈ 11,274.89
A = 10,000(1 +0.049/52)^(52·3) = 11,582.74
The higher interest rate will earn Mr. Larson the most money in three years. (4.9% weekly)
Answer:
Ans. you should deposit each month to end up with $38,000 the amount of $533.33 every month for 5 years at a APR of 6.5%
Step-by-step explanation:
Hi, first we have to convert all the data to monthly basis, that is, 5 years (5*12=60 months) and the rate of 6.5% APR offered by the bank (Monthly rate = 0.065/12=0,005666667 or 0.5667% monthly)
With that in mind, we need to solve for "A" the following equation.
Where:
FV = Future value of the car
r = rate of return offered by the bank
n = number of periods that you are going to make the monthly deposit
That is:
Best of luck.