Annual Interest in a Bank Account

Related BrainMass Solutions

• Compound interest rate formula

  262299 Compound interest rate formula You have deposited $2,200.00 in a bank account. What will its balance be after 4 years if the bank pays: A. 3% annual interest compounded quarterly. B. 2.25% annual interest compounded monthly.

• Interest Rates

  Scotia Bank- Daily Interest Savings Account - annual Rate of Interest = .1% = $5.00 per annum See http://cgi.scotiabank.com/rates/savings.html 2.

• Differences in compounding of interest

  462077 Differences in compounding of interest How much difference does it make for a bank account whether there is continuous compounding of interest, or monthly or annual compounding?

• This post addresses the nominal annual interest rate.

  472545 Nominal Annual Interest Rate You agree to make 24 deposits of $500 at the beginning of each month into a bank account. At the end of the 24th month, you will have $13,000 in your account.

• You have $2,000 invested in a bank account that pays a 4 percent nominal annual interest with daily compounding.

  154396 You have $2,000 invested in a bank account This is a multiple choice question. You have $2,000 invested in a bank account that pays a 4 percent nominal annual interest with daily compounding.

• Calculate the highest effective rate of interest & explain

  324349 Calculate the highest effective rate of interest and explain why. You are interested in investing your money in a bank account. Which of the following banks provides you with the highest effective rate of interest and why?

• A credit card account charges 20% as a nominal annual interest rate compounded monthly.

  You decide to put $1,000 into a saving account at your local bank. This account earns a nominal annual rate of 8%, but compounds interest quarterly at the rate of 2%.

• Future and Present Values

  648224 Future and Present Values (a) If you deposit $200 in the bank today, what is its future value at the end of three years if it is invested in an account paying 12% annual interest, assuming annual compounding?

• Three finance problems: Gomez, Bruce and Brenda retirement, FV of payments

  Effective interest rate = (1+quoted rate/number of payments in a year)^no of payments in year-1 Bank A's effective annual rate=(1+8%/12)^12-1=0.083 or 8.3% Bank B's effective annual rate = 9% Difference = 0.7% 2.