# Finance

posted by .

You have just placed \$1,500 in a bank savings deposit and plan to hold that
deposit for eight years, earning 5½ percent per annum. If the bank compounds interest daily, what will be the total value of the deposit in eight years? How does your answer change if the bank switches to monthly compounding? Quarterly compounding?

## Respond to this Question

 First Name School Subject Your Answer

## Similar Questions

1. ### Finance

7. Today you open a bank account and make a deposit of \$6,000. Then you make the following deposits: in t=1 you deposit \$6,500, in t=2 \$45,000, in t=3 nothing, in t=4 nothing, in t=5 \$7,000, in t=6 \$8,700. You made your last deposit …
2. ### Economics - Finance

If your bank pays 5.5 percent interest on savings deposits, what is the simple interest paid in the third year on an initial \$100 deposit?
3. ### math

you are going to open a certificate of deposit \$500 for 3 years with 2% interest. another bank offers a CD in which you must deposit \$250 for 4 years with 3% interest. Which CD will earn more interest.
4. ### Finance - Annuities

Natasha plans to deposit \$4,000 per year in her account for each of the next 4 years. Thereafter, she expects to deposit \$1,500 per year for another 4 years. All deposits are made at year-end. Interest rates are expected to be 8 percent …
5. ### Math

The cash price of a new care is \$34700. A person pays a deposit of 20% and agrees to pay the balance over 3 years at a flat interest rate of 14% per annum. Calculate: a) the deposit b) the balance owing after the deposit c) the interest …
6. ### magh

suppose you put money into teo different bank accounts. In account #1 you deposit \$500 and you will be earning 6% interest compounded quarterly. in account #2 you deposit \$600 and you will be earning 5% interest compounded annually. …
7. ### maths

Felicity has just commenced work and is investigating superannuation funds. She calculates that she will need \$1 000 000 in her fund when she retires in 40 years. She finds a fund guaranteeing to pay interest on each deposit at a rate …
8. ### maths

Felicity has just commenced work and is investigating superannuation funds. She calculates that she will need \$1 000 000 in her fund when she retires in 40 years. She finds a fund guaranteeing to pay interest on each deposit at a rate …
9. ### Maths

A deposit mature to 24200 after 3yeras at simple interest of7 percent per annum what is the principal amount of deposit
10. ### math

Suppose you deposit \$275.00 in your savings account on December 31. Your bank pays 3 percent annual interest on savings accounts. If you do not deposit any more money into the account, what would be the balance on December 31 of the …

More Similar Questions