You invest $1000 in an account that pays a rate of 5%, compounded semi-annually. How much would...

Question

Question

You invest $1000 in an account that pays a rate of 5%, compounded semi-annually. How much would you have after 2 years if you leave the funds on deposit? You should provide all the calculation process and formulas.

business finance

Answer 1

Answer #1

B 1000 2 1 par value (A) years period (N) 4 yield to maturity (R) 5 yield to maturity years semi annual yearly half yearly 5.

1000 par value (A) years period (N) yield to maturity (R) yield to maturity =+B2*2 years semi annual yearly half yearly 0.05

please ask if any query.

Answer 2

Similar Homework Help Questions

12. Compound interest. You invest $1000 in an account that pays 5% compounded annually. What is...

12. Compound interest. You invest $1000 in an account that pays 5% compounded annually. What is the balance after two years? 13. Compounding using different periods. You invest $2000 in an account that pays an APR of 6%. a. What is the value of the investment after three years if interest is compounded yearly? Round your
Question 2 of 13 If an account that pays intertest at 8.0% compounded semi-annually, how much...

Question 2 of 13 If an account that pays intertest at 8.0% compounded semi-annually, how much should you deposit today to pay yourself $1,200 every six months for 8 years if the first withdraw is deferred for 3 years and six months?
Your bank pays an interest rate quoted as 4.0% per annum compounded semi-annually. You invest $10,000...

Your bank pays an interest rate quoted as 4.0% per annum compounded semi-annually. You invest $10,000 into the bank now for a 5 year period. What will your balance be after 5 years?

Ravi invests $10,000 in an investment account that pays 4% compounded semi-annually. Ravi takes each interest...

Ravi invests $10,000 in an investment account that pays 4% compounded semi-annually. Ravi takes each interest payment and invests it in a savings account that pays 1% compounded monthly. a) How much money does Ravi have at the end of 10 years? b) What is the effective annual rate he earned over 10 years? please show full work done with all formulas
You deposit $1000 each year into an account earning 6% interest compounded annually. How much will...

You deposit $1000 each year into an account earning 6% interest compounded annually. How much will you have in the account in 15 years?
You deposit $3,000 at the end of the year (k = 0) into an account that pays interest at a rate of 7% compounded annually. A year after your deposit, the savings account interest rate changes to 1 2%...

You deposit $3,000 at the end of the year (k = 0) into an account that pays interest at a rate of 7% compounded annually. A year after your deposit, the savings account interest rate changes to 1 2% nominal interest compounded month y Five years after ur de o the savings account aga changes it interest rate this time e interest rate becomes 8% nominal interest compounded quarterly. Eight years after your deposit, the saving account changes its rate...

1. Your savings account currently has $1,200. The account pays 5 percent interest compounded annually. How...

1. Your savings account currently has $1,200. The account pays 5 percent interest compounded annually. How much will your account have 6 years from now? 2. A 10 year bond was issued three years ago. It pays 5% coupon semi-annually, and has a yield to maturity of 6%, what is the current market price of the bond? 3. A bond currently has a YTM of 8%. The bond matures in 3 years and pays interest semi-annually. The coupon rate is 7%....
/section/7473/assignment/14090 Mandeep Question 7 of 13 If an account that pays intertest at 9.0% compounded semi-annually,...

/section/7473/assignment/14090 Mandeep Question 7 of 13 If an account that pays intertest at 9.0% compounded semi-annually, how much should you deposit today to pay yourself $1,200 every six months for 9 years if the first withdraw is deferred for 2 years and six months Round to the nearest cent Next Question
3) Ravi invests $10,000 in an investment account that pays 4% compounded semi- annually. Ravi takes...

3) Ravi invests $10,000 in an investment account that pays 4% compounded semi- annually. Ravi takes each interest payment and invests it in a savings account that pays 1% compounded monthly. a) How much money does Ravi have at the end of 10 years? b) What is the effective annual rate he earned over 10 years?

How much interest is earned in an account by the end of 5 years if $30,000...

How much interest is earned in an account by the end of 5 years if $30,000 is deposited and interest is 4% per year, compounded semi-annually? What is the balance in an account at the end of 10 years if $6,500 is deposited today and the account earns 3% interest compounded annually? If you wish to accumulate $50,000 in 10 years, how much must you deposit today in an account that pays annual interest rate of 8%, with semi-annual compounding...