Deposits earn interest compounded annually

Assignment Help Business Economics

Reference no: EM131238776

You open a bank account, making a deposit of $500 now and deposits of $1,000 every other year. What is the total balance at the end of 10 years from now if your deposits earn 4% interest compounded annually?

(This means there is an initial deposit of $500 and then $1,000 deposits skipping one year. That is, at the end of the first year, there is no deposit; at the end of the second year, there is a $1,000 deposit; at the end of the third year there is no deposit; and so on.)

Reference no: EM131238776

Questions Cloud

Demand and supply for an imaginary good called pinckney : The following graph represents the demand and supply for an imaginary good called a pinckney. The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (st..

Given the payoff matrix to this advertising game : Two firms compete by advertising. Given the payoff matrix to this advertising game, identify each firm's best response to its rival's possible actions. Does either firm have a dominant strategy? What is the Nash equilibrium?

Firm conducted random survey of community residents : A consulting firm conducted a random survey of community residents, describing a planned riverside park and then asking each respondent the question: “What is the most that you would be willing to pay to have this park built along the river?” Do you ..

All of the numbered diamonds and spades from deck of cards : Suppose that all of the numbered diamonds and spades from a deck of cards (excluding Ace, King, Queen, and Jack) are used to set up a market. The diamonds determine demands, e.g. a 10 represents a buyer with a redemption value of $10. Similarly, the ..

Deposits earn interest compounded annually : You open a bank account, making a deposit of $500 now and deposits of $1,000 every other year. What is the total balance at the end of 10 years from now if your deposits earn 4% interest compounded annually?

How many years will it take to double your balance : You deposit $3,000 in a savings account that earns 8% simple interest per year. How many years will it take to double your balance? If, instead, you deposit the $3,000 in another savings account that earns 7% interest compounded yearly, how many year..

CPI measures the cost of living for typical urban household : The CPI measures the cost of living for a typical urban household. However, the elderly are rarely, if ever, "typical." Prices of health care, medications, and other items that are overrepresented in the budgets of the elderly continue to rise. There..

Statement using work-leisure model : Evaluate the following statement using a work-leisure model: "Given the wage rate, an individual will always prefer a job in which the worker, as opposed to the employer, selects the number of hours worked".

Consumption to maximize her satisfaction level : Karen's money income is $180, the price of X is $3, and the price of Y is $1.5. Given these prices and income, Karen buys 40 units of X and 40 units of Y. Call this combination of X and Y bundle C. At bundle C, Karen's Marginal Rate of Substitution b..

User Account

All Pages