Answer: A
Compound interest simply defined as the interest added at regular interval. Compound interested can be calculated using
Compound interest = P (1+) ^nt and Pe ^rt
P = Initial balance
r = Annual interest rate
n = Number of times the interest is compounded per year
t =Number of year money is invested
Using
Compound interest = P (1+ ) ^nt
Continuous
P= $ 8000
t = 6
r = 6.25%
=
= 0.0625
n = 1
Compound interest = 8000 (1+) ^1×6
= 8000 (1 + 0.0625) ^6
= 8000 (1.0625) ^ 6
= 8000× 1.4387
= $11,509.6
Semi- annually
P= $ 8000
t = 6
r = 6.3%
=
= 0.063
n = 2
Compound interest = 8000 (1+) ^2×6
= 8000 (1 + 0.063) ^12
= 8000 (1.063) ^12
= 8000× 1.4509
= $11,607.0
Investing $ 8000 semi-annually at 6.3% for 6 years yields greater return
Therefore the answer is (A)
Answer:
b
Step-by-step explanation:
i aint never seen two pretty best friends its always one of em gotta be ugly
It would be $10. There is a formula to this "madness". Divide $97.95 by 9.5%. Ignore the rest of the numbers. (I'm pretty sure it has like 7 or 8, but I only went up to 3. Just make sure you have have the whole number, $10). Hope this helps.
Assuming Jerry calculates that if he makes a deposit of $6 each month at an APR of 4.8%, then at the end of two years the correct balance will be: $158.5
First step is to determine Jerry total deposit
over the two years
Total deposit = 24×$5
Total deposit= $144
Now let determine what the correct balance will be at end of two years
Using this formula
Maximum Amount=Principal (1+r)^t
<em>Where</em>:
Principal=$144
r=4.8%/12 = 0.4% or 0.004
t=24 months
Let plug in the formula
Maximum Balance = $144 (1.004)^24
Maximum Balance = $158.5
Based on the above calculation both Jerry $100 and Benny $163 balance are eliminated or rule out because the correct balance after two years is $158.5
Inconclusion Assuming Jerry calculates that if he makes a deposit of $6 each month at an APR of 4.8%, then at the end of two years the correct balance will be: $158.5
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