Problem 2. On January 1, 1995, an investor opened a savings account at Bank Awith a deposit of $3,000 earning simple interest at an annual rate of 5.0%. At the endof business on December 31, 2003 the investor closed the account and invested theaccumulated amount in a savings account at Bank B earning 7.0% annual effectiverate of interest on a compound interest basis.(1)What should the balance be in the investor's savings account on De-cember 31, 2009?(2)On January 1, 2020, the investor receives a letter from Bank B statingthat an internal audit has discovered that interest was overcredited by 1% during theyear ending December 31, 2006 and undercredited by 1% during December 31, 2009.¹Based on this information, what should be the balance be in the investor's savingsaccount on December 31, 2009?

The simple interest is the interest earned on the same amount for each successive period. Compound…

Answered: Problem 2. On January 1, 1995, an…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 26Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer...

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2. On April 1 Kendrick opened a savings account at a bank that paid 3.55 $1,000. On April 20 he withdrew $500. On April 30 the bank calculated the daily percent interest. His initial deposit was $3,200. On April 9 he deposited another interest. a) How much simple interest did his money earn? b) How much was in the account after the bank calculated the daily interest on April 30?
You make deposits into your bank account, as follows: Right now (beginning of year 1) End of year 2 End of year 7 Rate paid by bank at end of each year After your last deposit you leave your money in the bank 3 years. What will your ending balance be at the end of year ten? A Between 2,000 and 3,000 B Between 3,000 and 3,700 C Between 3,700 and 4,200 D Between 4,200 and 5,000 1,100 323 481 4.5%
On 15 November in each of the years 1964 to 1979 inclusive an investor deposited £500 in a special bank savings account. On 15 November 1983 the investor withdrew their savings. Given that over the entire period the bank used an annual interest rate of 7% for its special savings accounts, find the sum withdrawn by the investor. Answer: £18,277.77 could you please explain how they got this answer
The following certificate of deposit (CD) was released from a particular bank. Find the compound amount and the amount of interest earned by the following deposit. $4000 at 1.21% compounded semianually for 3 years. The compound amount is $ (Do not round until the final answer. Then round to the nearest cent as needed.) The interest earned is $. (Do not round until the final answer. Then round to the nearest cent as needed.)
O e) None of the above 15. You deposit $8,000 in a bank account today. You make another deposit of $14,000 into the account in year one and you make a third deposit of $10,000 in year two. The bank pays interest at 8 percent compounded annually. How much will you have in your account at the end of year 3? * a) $37,207 b) $35,207 c) $39,207 d) $40,502 e) None of the above
May I ask for an explanation and solution to the question for a better understanding. Thank you! 11. You plan to invest an amount of money in a certificate of deposit (CD) at your bank. The stated interest rate applied to the CD is 12%, compounded monthly. How much must you invest if you want the balance in the CD account to be P8,500 in 2½ years? a. P143,302.66 b. P11,941.89 c. P6,306.34 d. P11,302.14
The following certificate of deposit (CD) was released from a particular bank. Find the compound amount and the amount of interest earned by the following deposit. $4000 at 1.07% compounded semianually for 3 years. The compound amount is $. (Do not round until the final answer. Then round to the nearest cent as needed.)
Interest on your bank balance: Suppose your bank account has a balance todayof $100. Consider the following time periods: t = 0, t = 1, t = 2, t = 12,t = 24, t = 48, and t = 60. Assume there are no deposits or withdrawalsin this account other than the interest that accumulates. (If you like, use aspreadsheet program to help you with this question.)(a) Compute your bank balance for these time periods assuming the interestrate is 1%.(b) Do the same thing for an interest rate of 6%.(c) Plot your bank balances for these two scenarios on a standard scale.(d) Do the same thing with a ratio scale.
O e) None of the above 15. You deposit $8,000 in a bank account today. You make another deposit of $14,000 into the account in year one and you make a third deposit of $10,000 in year two. The bank pays interest at 8 percent compounded annually. How much will you have in your account at the end of year 3? * O a) $37,207 O b) $35,207 O c) $39,207 O d) $40,502 e) None of the above 16 If the lnflation rate is 20% and the nominalriskefree inter
3. You deposited $2,000 in a bank account paying 6% on January 1, 2004, and then you made $2,000 deposits on January1 in 2005 and 2006. Please calculate your bank balance just after the last payment was deposited?
You deposit $100, $150, & $200 in a bank account at the end of years 1,2,& 3 and earn 7%interest. If (P/G, 7%, 3)=2.506 and (A/P, 7%, 3)=.3811 what is the present value (now) ofthese deposits.
Question 1: Choose the correct answer An amount of money was deposited in the savings fund with an annual interest of -1 (8%), calculated every six months. What is the actual interest? (The actual leader is (11.16%) 0 is O(9.16%). The effective interest (The effective interest is (10.16%) 0 The actual leader is (8.16%) 0 A finance company loaned an engineering company -2 ($100,000) to rehabilitate poorly constructed buildings. The term of the loan was 3 years with a simple interest (10%). How much will the company pay at the end of the third year *? The amount is (120,000) dollars The amount is (130,000) dollars. 0 The amount is (150,000) dollars, 0 (The amount is (140,000) dollars. 0

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