SOLUTION: Assume a firm makes a $2,500 deposit into its money market account. If this account is currently paying 0.7%, what will be the balance after (i) 1 year (ii) 3 year (iii) 5years.

Question 1196759: Assume a firm makes a $2,500 deposit into its money market account. If this account is currently paying 0.7%, what will be the balance after (i) 1 year (ii) 3 year (iii) 5years.
Answer by ikleyn(52781) (Show Source): You can put this solution on YOUR website!
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(i)   2500*(1+0.007) = 2500*1.007 = use your calculator. Round the answer to the nearest penny.


(ii)   = use your calculator. Round the answer to the nearest penny.


(iii)  = use your calculator. Round the answer to the nearest penny.

Solved.

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To see many other similar (and different) solved problems on compounded interest accounts, look into the lesson
- Compounded interest percentage problems
in this site.

Learn the subject from there.

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