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Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596 Exercise 122
Solve the following word problems by using Table 11-1.
The First National Bank is offering a 6-year certificate of deposit (CD) at 4% interest compounded quarterly; Second National Bank is offering a 6-year CD at 5% interest compounded annually.
a. If you were interested in investing $8,000 in one of these CDs, calculate the compound amount of each offer.
b. What is the annual percentage yield of each CD?
c. (Optional) If Third National Bank has a 6-year CD at 4.5% interest compounded monthly, use the compound interest formula to calculate the compound amount of this offer.
The First National Bank is offering a 6-year certificate of deposit (CD) at 4% interest compounded quarterly; Second National Bank is offering a 6-year CD at 5% interest compounded annually.
a. If you were interested in investing $8,000 in one of these CDs, calculate the compound amount of each offer.
b. What is the annual percentage yield of each CD?
c. (Optional) If Third National Bank has a 6-year CD at 4.5% interest compounded monthly, use the compound interest formula to calculate the compound amount of this offer.
Explanation
Verified
Verified
a)
Given,
The amount is $ 8,000,
Time pe...
Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
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