volora
Mar 15, 2009, 11:15 AM
I'm trying to figure out how to do these problems and I can't get the right answers. I would really appreciate any help.
1. Assume that I deposit $1250 today into an account that pays 10% p.a. but with quarterly compounding. How much will be in my account exactly 35 years from today?
2. Assume that the stated nominal interest rate is 7.5% compounded continuously. What is the effective
Rate?
3. Kerri deposits $8,000 in a bank account today. She makes another deposit of $14,000 into the account at the end of year one and she makes a third deposit of $10,000 at the end of year twoNo additional deposits are made. If the bank pays interest at 8 percent compounded annually, how much will she have in her account at the end of eight years?
ROLCAM
Mar 16, 2009, 02:22 AM
Assume that I deposit $1250 today into an account that pays 10% p.a. but with quarterly compounding. How much will be in my account exactly 35 years from today?
FIRST PART.
10% compounded quarterly .
1.000000 1.025000
1.025000 1.050625
1.050625 1.076891
1.076891 1.103813
New Rate = 10.3813%
##############################
SECOND PART .
1 1,250.00 1,379.77
2 1,379.77 1,523.01
3 1,523.01 1,681.12
4 1,681.12 1,855.64
5 1,855.64 2,048.28
6 2,048.28 2,260.92
7 2,260.92 2,495.63
8 2,495.63 2,754.71
9 2,754.71 3,040.69
10 3,040.69 3,356.35
11 3,356.35 3,704.78
12 3,704.78 4,089.39
13 4,089.39 4,513.92
14 4,513.92 4,982.52
15 4,982.52 5,499.77
16 5,499.77 6,070.72
17 6,070.72 6,700.94
18 6,700.94 7,396.59
19 7,396.59 8,164.45
20 8,164.45 9,012.02
21 9,012.02 9,947.59
22 9,947.59 10,980.28
23 10,980.28 12,120.17
24 12,120.17 13,378.40
25 13,378.40 14,767.26
26 14,767.26 16,300.29
27 16,300.29 17,992.47
28 17,992.47 19,860.32
29 19,860.32 21,922.08
30 21,922.08 24,197.88
31 24,197.88 26,709.94
32 26,709.94 29,482.77
33 29,482.77 32,543.47
34 32,543.47 35,921.90
35 35,921.90 39,651.07
Please acknowledge understanding.
ROLCAM
Mar 16, 2009, 02:50 AM
2. Assume that the stated nominal interest rate is 7.5% compounded continuously. What is the effective
rate?
The effective rate is = 7.7876062%
See Calculation:-
1 1.0000000000 1.0002054800
2 1.0002054800 1.0004110022
3 1.0004110022 1.0006165667
4 1.0006165667 1.0008221734
5 1.0008221734 1.0010278223
6 1.0010278223 1.0012335135
7 1.0012335135 1.0014392470
8 1.0014392470 1.0016450227
9 1.0016450227 1.0018508407
10 1.0018508407 1.0020567010
11 1.0020567010 1.0022626036
12 1.0022626036 1.0024685486
13 1.0024685486 1.0026745358
14 1.0026745358 1.0028805654
15 1.0028805654 1.0030866373
16 1.0030866373 1.0032927515
17 1.0032927515 1.0034989081
18 1.0034989081 1.0037051071
19 1.0037051071 1.0039113484
20 1.0039113484 1.0041176321
21 1.0041176321 1.0043239582
22 1.0043239582 1.0045303267
23 1.0045303267 1.0047367376
24 1.0047367376 1.0049431909
25 1.0049431909 1.0051496866
26 1.0051496866 1.0053562247
27 1.0053562247 1.0055628053
28 1.0055628053 1.0057694284
29 1.0057694284 1.0059760939
30 1.0059760939 1.0061828019
31 1.0061828019 1.0063895523
32 1.0063895523 1.0065963452
33 1.0065963452 1.0068031806
34 1.0068031806 1.0070100586
35 1.0070100586 1.0072169790
36 1.0072169790 1.0074239419
37 1.0074239419 1.0076309474
38 1.0076309474 1.0078379954
39 1.0078379954 1.0080450860
40 1.0080450860 1.0082522191
41 1.0082522191 1.0084593947
42 1.0084593947 1.0086666130
43 1.0086666130 1.0088738738
44 1.0088738738 1.0090811772
45 1.0090811772 1.0092885232
46 1.0092885232 1.0094959118
47 1.0094959118 1.0097033430
48 1.0097033430 1.0099108169
49 1.0099108169 1.0101183333
50 1.0101183333 1.0103258924
51 1.0103258924 1.0105334942
52 1.0105334942 1.0107411386
53 1.0107411386 1.0109488257
54 1.0109488257 1.0111565555
55 1.0111565555 1.0113643279
56 1.0113643279 1.0115721431
57 1.0115721431 1.0117800009
58 1.0117800009 1.0119879015
59 1.0119879015 1.0121958447
60 1.0121958447 1.0124038308
61 1.0124038308 1.0126118595
62 1.0126118595 1.0128199310
63 1.0128199310 1.0130280452
64 1.0130280452 1.0132362022
65 1.0132362022 1.0134444020
66 1.0134444020 1.0136526445
67 1.0136526445 1.0138609299
68 1.0138609299 1.0140692580
69 1.0140692580 1.0142776290
70 1.0142776290 1.0144860428
71 1.0144860428 1.0146944993
72 1.0146944993 1.0149029988
73 1.0149029988 1.0151115410
74 1.0151115410 1.0153201262
75 1.0153201262 1.0155287541
76 1.0155287541 1.0157374250
77 1.0157374250 1.0159461387
78 1.0159461387 1.0161548953
79 1.0161548953 1.0163636948
80 1.0163636948 1.0165725372
81 1.0165725372 1.0167814226
82 1.0167814226 1.0169903508
83 1.0169903508 1.0171993220
84 1.0171993220 1.0174083361
85 1.0174083361 1.0176173932
86 1.0176173932 1.0178264932
87 1.0178264932 1.0180356362
88 1.0180356362 1.0182448221
89 1.0182448221 1.0184540511
90 1.0184540511 1.0186633230
91 1.0186633230 1.0188726380
92 1.0188726380 1.0190819959
93 1.0190819959 1.0192913969
94 1.0192913969 1.0195008409
95 1.0195008409 1.0197103279
96 1.0197103279 1.0199198580
97 1.0199198580 1.0201294311
98 1.0201294311 1.0203390473
99 1.0203390473 1.0205487066
100 1.0205487066 1.0207584089
101 1.0207584089 1.0209681544
102 1.0209681544 1.0211779429
103 1.0211779429 1.0213877746
104 1.0213877746 1.0215976493
105 1.0215976493 1.0218075672
106 1.0218075672 1.0220175282
107 1.0220175282 1.0222275324
108 1.0222275324 1.0224375797
109 1.0224375797 1.0226476702
110 1.0226476702 1.0228578038
111 1.0228578038 1.0230679806
112 1.0230679806 1.0232782006
113 1.0232782006 1.0234884639
114 1.0234884639 1.0236987703
115 1.0236987703 1.0239091199
116 1.0239091199 1.0241195127
117 1.0241195127 1.0243299488
118 1.0243299488 1.0245404281
119 1.0245404281 1.0247509507
120 1.0247509507 1.0249615165
121 1.0249615165 1.0251721256
122 1.0251721256 1.0253827780
123 1.0253827780 1.0255934736
124 1.0255934736 1.0258042126
125 1.0258042126 1.0260149948
126 1.0260149948 1.0262258204
127 1.0262258204 1.0264366893
128 1.0264366893 1.0266476015
129 1.0266476015 1.0268585570
130 1.0268585570 1.0270695559
131 1.0270695559 1.0272805982
132 1.0272805982 1.0274916838
133 1.0274916838 1.0277028128
134 1.0277028128 1.0279139852
135 1.0279139852 1.0281252009
136 1.0281252009 1.0283364601
137 1.0283364601 1.0285477627
138 1.0285477627 1.0287591087
139 1.0287591087 1.0289704981
140 1.0289704981 1.0291819309
141 1.0291819309 1.0293934072
142 1.0293934072 1.0296049270
143 1.0296049270 1.0298164902
144 1.0298164902 1.0300280969
145 1.0300280969 1.0302397471
146 1.0302397471 1.0304514408
147 1.0304514408 1.0306631779
148 1.0306631779 1.0308749586
149 1.0308749586 1.0310867828
150 1.0310867828 1.0312986505
151 1.0312986505 1.0315105617
152 1.0315105617 1.0317225165
153 1.0317225165 1.0319345149
154 1.0319345149 1.0321465568
155 1.0321465568 1.0323586422
156 1.0323586422 1.0325707713
157 1.0325707713 1.0327829439
158 1.0327829439 1.0329951602
159 1.0329951602 1.0332074200
160 1.0332074200 1.0334197235
161 1.0334197235 1.0336320706
162 1.0336320706 1.0338444613
163 1.0338444613 1.0340568956
164 1.0340568956 1.0342693737
165 1.0342693737 1.0344818953
166 1.0344818953 1.0346944607
167 1.0346944607 1.0349070697
168 1.0349070697 1.0351197224
169 1.0351197224 1.0353324188
170 1.0353324188 1.0355451589
171 1.0355451589 1.0357579427
172 1.0357579427 1.0359707703
173 1.0359707703 1.0361836415
174 1.0361836415 1.0363965565
175 1.0363965565 1.0366095153
176 1.0366095153 1.0368225178
177 1.0368225178 1.0370355641
178 1.0370355641 1.0372486542
179 1.0372486542 1.0374617880
180 1.0374617880 1.0376749657
181 1.0376749657 1.0378881871
182 1.0378881871 1.0381014524
183 1.0381014524 1.0383147615
184 1.0383147615 1.0385281144
185 1.0385281144 1.0387415112
186 1.0387415112 1.0389549518
187 1.0389549518 1.0391684362
188 1.0391684362 1.0393819646
189 1.0393819646 1.0395955368
190 1.0395955368 1.0398091529
191 1.0398091529 1.0400228129
192 1.0400228129 1.0402365167
193 1.0402365167 1.0404502645
194 1.0404502645 1.0406640563
195 1.0406640563 1.0408778919
196 1.0408778919 1.0410917715
197 1.0410917715 1.0413056950
198 1.0413056950 1.0415196625
199 1.0415196625 1.0417336740
200 1.0417336740 1.0419477294
201 1.0419477294 1.0421618288
202 1.0421618288 1.0423759723
203 1.0423759723 1.0425901597
204 1.0425901597 1.0428043911
205 1.0428043911 1.0430186665
206 1.0430186665 1.0432329860
207 1.0432329860 1.0434473495
208 1.0434473495 1.0436617571
209 1.0436617571 1.0438762087
210 1.0438762087 1.0440907044
211 1.0440907044 1.0443052442
212 1.0443052442 1.0445198280
213 1.0445198280 1.0447344559
214 1.0447344559 1.0449491280
215 1.0449491280 1.0451638441
216 1.0451638441 1.0453786044
217 1.0453786044 1.0455934088
218 1.0455934088 1.0458082573
219 1.0458082573 1.0460231500
220 1.0460231500 1.0462380868
221 1.0462380868 1.0464530678
222 1.0464530678 1.0466680930
223 1.0466680930 1.0468831624
224 1.0468831624 1.0470982759
225 1.0470982759 1.0473134337
226 1.0473134337 1.0475286356
227 1.0475286356 1.0477438818
228 1.0477438818 1.0479591722
229 1.0479591722 1.0481745069
230 1.0481745069 1.0483898858
231 1.0483898858 1.0486053089
232 1.0486053089 1.0488207764
233 1.0488207764 1.0490362880
234 1.0490362880 1.0492518440
235 1.0492518440 1.0494674443
236 1.0494674443 1.0496830889
237 1.0496830889 1.0498987777
238 1.0498987777 1.0501145109
239 1.0501145109 1.0503302885
240 1.0503302885 1.0505461103
241 1.0505461103 1.0507619766
242 1.0507619766 1.0509778871
243 1.0509778871 1.0511938421
244 1.0511938421 1.0514098414
245 1.0514098414 1.0516258851
246 1.0516258851 1.0518419732
247 1.0518419732 1.0520581056
248 1.0520581056 1.0522742825
249 1.0522742825 1.0524905039
250 1.0524905039 1.0527067696
251 1.0527067696 1.0529230798
252 1.0529230798 1.0531394344
253 1.0531394344 1.0533558335
254 1.0533558335 1.0535722771
255 1.0535722771 1.0537887651
256 1.0537887651 1.0540052976
257 1.0540052976 1.0542218746
258 1.0542218746 1.0544384961
259 1.0544384961 1.0546551622
260 1.0546551622 1.0548718727
261 1.0548718727 1.0550886278
262 1.0550886278 1.0553054274
263 1.0553054274 1.0555222716
264 1.0555222716 1.0557391603
265 1.0557391603 1.0559560936
266 1.0559560936 1.0561730714
267 1.0561730714 1.0563900939
268 1.0563900939 1.0566071609
269 1.0566071609 1.0568242725
270 1.0568242725 1.0570414288
271 1.0570414288 1.0572586297
272 1.0572586297 1.0574758752
273 1.0574758752 1.0576931653
274 1.0576931653 1.0579105001
275 1.0579105001 1.0581278795
276 1.0581278795 1.0583453037
277 1.0583453037 1.0585627725
278 1.0585627725 1.0587802859
279 1.0587802859 1.0589978441
280 1.0589978441 1.0592154470
281 1.0592154470 1.0594330946
282 1.0594330946 1.0596507869
283 1.0596507869 1.0598685239
284 1.0598685239 1.0600863057
285 1.0600863057 1.0603041322
286 1.0603041322 1.0605220035
287 1.0605220035 1.0607399196
288 1.0607399196 1.0609578804
289 1.0609578804 1.0611758861
290 1.0611758861 1.0613939365
291 1.0613939365 1.0616120317
292 1.0616120317 1.0618301718
293 1.0618301718 1.0620483566
294 1.0620483566 1.0622665863
295 1.0622665863 1.0624848609
296 1.0624848609 1.0627031802
297 1.0627031802 1.0629215445
298 1.0629215445 1.0631399536
299 1.0631399536 1.0633584076
300 1.0633584076 1.0635769065
301 1.0635769065 1.0637954503
302 1.0637954503 1.0640140390
303 1.0640140390 1.0642326726
304 1.0642326726 1.0644513511
305 1.0644513511 1.0646700746
306 1.0646700746 1.0648888430
307 1.0648888430 1.0651076563
308 1.0651076563 1.0653265146
309 1.0653265146 1.0655454179
310 1.0655454179 1.0657643662
311 1.0657643662 1.0659833595
312 1.0659833595 1.0662023977
313 1.0662023977 1.0664214810
314 1.0664214810 1.0666406093
315 1.0666406093 1.0668597826
316 1.0668597826 1.0670790010
317 1.0670790010 1.0672982643
318 1.0672982643 1.0675175728
319 1.0675175728 1.0677369263
320 1.0677369263 1.0679563249
321 1.0679563249 1.0681757686
322 1.0681757686 1.0683952573
323 1.0683952573 1.0686147912
324 1.0686147912 1.0688343701
325 1.0688343701 1.0690539942
326 1.0690539942 1.0692736634
327 1.0692736634 1.0694933778
328 1.0694933778 1.0697131373
329 1.0697131373 1.0699329419
330 1.0699329419 1.0701527918
331 1.0701527918 1.0703726868
332 1.0703726868 1.0705926269
333 1.0705926269 1.0708126123
334 1.0708126123 1.0710326429
335 1.0710326429 1.0712527187
336 1.0712527187 1.0714728397
337 1.0714728397 1.0716930059
338 1.0716930059 1.0719132174
339 1.0719132174 1.0721334741
340 1.0721334741 1.0723537761
341 1.0723537761 1.0725741234
342 1.0725741234 1.0727945159
343 1.0727945159 1.0730149537
344 1.0730149537 1.0732354368
345 1.0732354368 1.0734559652
346 1.0734559652 1.0736765390
347 1.0736765390 1.0738971580
348 1.0738971580 1.0741178224
349 1.0741178224 1.0743385322
350 1.0743385322 1.0745592872
351 1.0745592872 1.0747800877
352 1.0747800877 1.0750009335
353 1.0750009335 1.0752218247
354 1.0752218247 1.0754427613
355 1.0754427613 1.0756637432
356 1.0756637432 1.0758847706
357 1.0758847706 1.0761058434
358 1.0761058434 1.0763269617
359 1.0763269617 1.0765481253
360 1.0765481253 1.0767693344
361 1.0767693344 1.0769905890
362 1.0769905890 1.0772118890
363 1.0772118890 1.0774332345
364 1.0774332345 1.0776546255
365 1.0776546255 1.0778760620
Please acknowledge understanding.
ROLCAM
Mar 16, 2009, 02:59 AM
3 ) Kerri deposits $8,000 in a bank account today. She makes another deposit of $14,000 into the account at the end of year one and she makes a third deposit of $10,000 at the end of year twoNo additional deposits are made. If the bank pays interest at 8 percent compounded annually, how much will she have in her account at the end of eight years?
YEARS
1 8,000.0000 8,640.0000
2 22,640.0000 24,451.2000
3 34,451.2000 37,207.2960
4 37,207.2960 40,183.8797
5 40,183.8797 43,398.5901
6 43,398.5901 46,870.4773
7 46,870.4773 50,620.1155
8 50,620.1155 54,669.7247
Please acknowledge understanding.