What will the compound amount equal

Reference no: EM13867703

1.A sum of $8,000 is invested in a savings account which pays interest at a rate of 9 percent per year compounded annually. If the amount is kept on deposit for 6 years, what will the compound amount equal? How much interest will be earned during the 6 years?

2.A university endowment fund has invested $4 million in United States government certificates of deposit. Interest of 8 percent per year, compounded semiannually, will be earned for 10 years. To what amount will the investment grow during this period? How much interest will be earned?

3. A company invests $500,000 in a money market fund which is expected to yield interest at a rate of 10 percent per year compounded quarterly. If the interest rate projections are valid, to what amount should the $500,000 grow over the next 10 years? How much interest will be earned during this period?

4.An individual invests $25,000 in a money market fund which is expected to yield interest at a rate of 12 percent per year compounded quarterly. If the interest remains stable, to what amount should the $25,000 grow over the next 5 years? How much interest will be earned during this period?

Reference no: EM13867703

Questions Cloud

Explain the operating features of an i/o data image table : Describe very briefly the function and essential features of each block - Identify all inputs and outputs by the use of I/O designation charts.

How much interest will be earned during this period : 1.An organization invests $500,000 in an investment which is expected to yield interest at a rate of 9 percent per year compounded semiannually. If the money is invested for 10 years, to what amount should it grow? How much interest will be earned du..

Evaluate three implications of health care research : Evaluate three implications of health care research when considering or designing professional development opportunities for health care leaders/professionals

Determine the mean and the median of a typical wash cycle : A recent study of the laundry habits of Americans included the time in minutes of the wash cycle. A sample of 40 observations follows. Determine the mean and the median of a typical wash cycle.

What will the compound amount equal : 1.A sum of $8,000 is invested in a savings account which pays interest at a rate of 9 percent per year compounded annually. If the amount is kept on deposit for 6 years, what will the compound amount equal? How much interest will be earned during the..

What is the median number of appointments per hour : What is the arithmetic mean number of appointments she made per hour? What is the median number of appointments per hour? Write a brief report summarizing the findings.

Determine the interest which must be paid : 1.A student has received a $30,000 loan from a wealthy aunt in order to finance his 4-year college program. The terms are that the student repay his aunt in full at the end of 8 years with simple interest computed at a rate of 4 percent per year. De..

What motivates you to use wireless technology at work : What motivates you to use wireless technology at work or home?

A major airline is planning to purchase new airplanes : A major airline is planning to purchase new airplanes. It wants to borrow $800 million by issuing bonds. The bonds are for a 10-year period with simple interest computed quarterly at a rate of 2 percent per quarter. Interest is to be paid each quarte..

User Account

All Pages