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.
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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(52776) (Show Source):
(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.
