Finance

posted by .

YOU DEPOSIT $5,000 INTO THE FIRST NATIONAL BANK OF FIN 301 AND EARN 2.5% COMPOUNDED CONTINUOUSLY. HOW MUCH WILL YOU HAVE IN 5 YEARS?

  • Finance -

    P = Po*e^rt.

    Po = $5,000.
    rt = (2.5%/yr * 5yrs.) / 100% = 0.125 = 5-yr % rate expressed as a decimal

    Plug the above values into the given Eq.
    Answer: $5665.74.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Finance

    You receive $12,000 and looking for a bank to deposit the funds. Bank A offers an account with an annual interest rate of 3% compounded semiannually. Bank B offers an account with 2.75% annual interest rate compounded continuously. …
  2. Finance

    You receive $12,000 and looking for a bank to deposit the funds. Bank A offers an account with an annual interest rate of 3% compounded semiannually. Bank B offers an account with 2.75% annual interest rate compounded continuously. …
  3. Pre-Cal

    A website is offering a savings account that pays 33% compounded continuously. How much interest would a deposit of $3,000 earn over 15 years?
  4. Math

    1. If one wishes to accumulate a Php 30,000-fund in 5 years, how much should he deposit now at 18% compounded quarterly?
  5. Mathematics and investment

    1. Angelo wants to renovate his house in 3 years. He estimates the cost 300,000. How much must Angelo invest now at 8% compounded quarterly in order to have 300,000 3 years from now. 2. Angelo Ancis want to save 500,000 in 5.5 years …
  6. Math

    1. If one wishes to accumulate a Php 30,000-fund in 5 years, how much should he deposit now at 18% compounded quarterly?
  7. Math

    1. If one wishes to accumulate a 30,000-fund in 5 years, how much should he deposit now at 18% compounded quarterly?
  8. The Value of an Annuity

    you would like to have $800,000 when you retire in 35 years. How much should you invest each quarter if you can earn a rate of 6.7% compounded quarterly?
  9. math

    Annuities /assessment You would like to have $550,000 when you retire in 35 years. You would like to have $550,000 when you retire in 35 years. How much should you invest each quarter if you can earn a rate of 4.8% compounded quarterly?
  10. algebra

    If Ron put $1000 of his money into a bank account that earns a 2.3% annual interest rate, how much will he earn after 10 years if the interest is compounded A. yearly, B monthly?

More Similar Questions