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# \$1,000 in savings that yields 8% compounded semiannually,how much will U have in 20 yrs?

Compounded

## Research, Knowledge and Information :

### Compound Interest - Periodic Compounding - Math Is Fun

Compound Interest: Periodic Compounding. ... 20.00%: 100.00%: Semiannually: 2 : 1.00%: 5.06%: ... Continuous Compounding for 8% is: e 0.08 − 1 = 1.08329 ...

### FINA 3770 Chap. 5 UNT Flashcards | Quizlet

FINA 3770 Chap. 5 UNT. ... If you put \$2,000 in a savings account that yields 8% compounded semiannually, how much money ... How much money will you have in 20 ...

### Finance Chapter 5 Flashcards | Quizlet

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### (Solved) - 7-2) If you put \$1,000 in a savings account that ...

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### If You Put \$1,000 In A Savings Account That Yield ... - Chegg

Answer to If you put \$1,000 in a savings account that yield's 8 ... much money will you have in the account in 20 ... savings account that yields 8% compounded ...

### If you put \$1,000 in a savings account that yields 8% ...

If you put \$1,000 in a savings account that yields 8% compounded semi­annually, how much money will you have in the account in 20 years (round to nearest \$10) Solution:

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... the three accounts in Part 1. Account #1: Annual Compounding ... interest rate is compounded semiannually. ... % per year compounded quarterly, then n = 20 ...

## Suggested Questions And Answer :

### \$1,000 in savings that yields 8% compounded semiannually,how much will U have in 20 yrs?

start: 1000\$, 8%, kompound 2 times a yeer, 20 yeers (value/start)=[1+(%/n)]^nt =1.04^40=4.801020628 fyucher \$=start \$*4.80102=4,801.21\$

### How much interest will a savings account holding \$1200 earn in a year at 6%?

If it's simple interest, it's 6% or 6/100=3/50 of the amount invested over one year: 3*1200/50 or 6*1200/100=\$72 interest, making \$1272 in the account after a year. If it's compound interest compounded each year, then the answer is still \$72 for one year. If interest is compounded every month the total amount after a year is 1200*1.005^12=\$1274.01. (1.005=1+6%/12=1+1/2%=1.005.) If interest is compounded quarterly, we divide 6% by 4=1.5%=0.015 and the amount after a year would be 1200*1.015^4=\$1273.64.

Let Laurie's annual deposit be L and Kemeny's monthly deposit be K. After a year we have interest of 6.7%, making 1.067*L in savings; we also have after a month 1.00667K in savings. (8% per annum is 0.667% monthly.) After a year we have K((1.00667)^12+(1.00667)^11+...+(1.00667)^2+1.00667) in savings, because the first month's deposit accrues 12 periods of compound interest, the second month's 11 periods, the third month's 10 periods and so on. This is a geometric progression with common multiplier, r=1.00667, and first term=r, so we can use the expression for the sum of a geometric series S=r(r^n)-1)/(r-1) and the amount after a year (n=12) is 12.533K. After 6 years, then, we have 72 months and n=72, so the total amount is 1.00667(1.00667^72-1)/0.00667K=92.6388K. This must come to \$220000, so K=220000/92.6388=\$2,374.81 per month. [Proof of formula for S. S=r+r^2+r^3+...+r^n; rS=r^2+r^3+r^4+...+r^n+r^(n+1); rS-S=S(r-1)=r^(n+1)-r, so S=r(r^n-1)/(r-1).] For L S=1.067(1.067^6-1)/0.067=7.5751 and the amount accrued after 6 years is 7.5751L, which must come to \$220000 and L=220000/7.5751=\$29,042.62. Her monthly payment is 29042.62/12=\$2,420.22. So Laurie's monthly payment is \$2,420.22 and Kemeny's is \$2,374.81. The difference in interest is given by 220000-72K-(220000-6L)=6L-72K=6*29042.62-72*2374.81=\$3,269.40.

### Bernie fries saves 500 at the end of every quarter in an ordinary annuity earning 7.2% interest compounded quarterly what is the amount of his Savings in 20 years and interest will he have earned

In 20 years there are 80 quarters. I'm assuming that 7.2% is the quarterly interest rate not the rate per annum. See later for alternative solutions. 1st quarter: 500+7.2%=500+500*0.072=500*1.072=536, assuming that each saving of 500 is subject to full interest in the same quarter (see later). 2nd quarter: 536+500+7.2% of (536+500)=1036*1.072=1110.59 approx. 3rd quarter: (1036*1.072+500)(1.072)=1726.55 approx, and so on. There's a pattern: (500*1.072+500*1.072^2+500*1.072^3+...+500*1.072^80). That is, 500*1.072(1+1.072+1.072^2+...+1.072^79)=536(1.072^80-1)/(1.072-1)=536*3602.29=1,930,829 approx. Depending on whether the first and each subsequent quarter is credited with full quarterly interest in the same quarter, the answer could be either 1,930,829 or 1,801,147 approximately, the lower amount being when interest is credited in the quarter following the savings deposit. To find the interest we need to know how much was saved without interest=500*80=40,000. Therefore the interest is 1,890,829 or 1,761,147. If 7.2% is the annual rate, the quarterly rate is 1.8%. The adjusted figures require us to use the factor 1.018 instead of 1.072. The total savings=89,555.38 or 87,971.89 and the corresponding interest is 49,555.38 or 47,971.89. (The first quarter's savings would be 509 instead of 536. The 2nd quarter's savings=1,027.16 approx, and so on.)

### what is te effective yield of a saving account that is compounded semi-annuallyat an nominal rate of 5.43%?

6 months at an annual rate of 5.43% is 2.715% so the effective rate is found by squaring 1.02715=1.05504, and so the percentage is 100(1.05504-1)=5.504%.

### Sara deposits R900 into a savings account earning 61.5% interest per year compounded quarterly.

61.5% per year (a very generous interest rate indeed!) is 61.5/4%=15.375% a quarter. The amount plus compound interest after 3.5 years (14 quarters) is given by 900*1.15375^14=R6665.10, from which she draws R1000, leaving R5665.10. 11% per year is 5.5% semiannually. The amount plus compound interest after 2 years (4 half-years)=1000*1.055^4=R1238.82. In the meantime, R5665.10 is accumulating compound interest every quarter, and 2 years is 8 quarters, so the accumulated amount is 5665.10*1.15375^8=R17786.93. Add this to the accumulated amount from the R1000 investment and we get R19025.76. This answer corresponds to [5] "None of the above".

### If a item cost 35.65 I pay 30.30 for it how much percent is that off?

If a item cost 35.65 I pay 30.30 for it how much percent is that off? \$35.65 x percent off = \$5.35 30.30 / 5.35 = 0 .15 or 15% so, percent off = 0.15 or 15% check: \$35.65 x 85% = \$30.30 \$35.65 x 0.85 = \$30.30

### What is 525x1.05 with power of 11

500*(1.05)^10 = 814.45 this is different from what you specified by the title

### Compound Interst

du yu assume him put down x\$ now & it sit theer 3.5 yeers & gro from interest? normal wae is tu add munee evree month if yu kan (but it is more komplex) at 8%, kompound evree month (end \$)/(start 4)=1.0066666)^42 =1.321897 so \$ put-up=\$ want/1.321897 =5000\$/1.321897 =3782.44\$