$1,307 $1,252.50 $1,328 $1,314 One hundred dollars of interest is paid each mont

Question

$1,307 $1,252.50 $1,328 $1,314

1. One hundred dollars of interest is paid each month on an investment of $10,000. If interest is compounded monthly, the accumulation at the end of two years is equal to ____________. A. $12,700 B. $12,400 C. $12,544 D. $12,900
   .

One hundred dollars of interest is paid each month on an investment of $10,000. If interest is compounded monthly, the accumulation at the end of two years is equal to ____________. A. $12,700 B. $12,400 C. $12,544 D. $12,900
. One hundred dollars of interest is paid each month on an investment of $10,000. If interest is compounded monthly, the accumulation at the end of two years is equal to ____________. $12,700 $12,400 $12,544 $12,900
. A. $1,307 B. $1,252.50 C. $1,328 D. $1,314

1. One hundred dollars of interest is paid each month on an investment of $10,000. If interest is compounded monthly, the accumulation at the end of two years is equal to ____________. A. $12,700 B. $12,400 C. $12,544 D. $12,900
   .

A sum of $1,000 deposited at time "0" at an interest rate of compounded quarterly for 5 years. The future worth of this deposit is equal to ____________.

Explanation / Answer

Rate = 5.5/4 = 1.375 %

FV = 1000*(1+1.375/100)^20 = $1314

Rate = 100/10000 = 0.01 = 1%

Yearly = 12*0.01 = 0.12 = 12 %

ans = 10,000*1.12^2 = $ 12544

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