An investment of $6,599.20 earns 4.2% interest compounded monthly over 7 years. Approximately how much interest is earned on the investment?
Select the correct statement and rationale relating the interest rates of online banks to those of traditional banks.
Some online banks offer “online bill pay.” What does this mean?
Greg invests $2,680 in a CD paying 7.0% interest, and $3,060 in an online savings account paying 4.5% interest. How much more interest will the CD have earned than the savings account after 1 year?
Choose the proper rationale. “In the compound interest equation, time (the variable t) has the biggest effect on the outcome because...”
A principal of $4,570 is placed in an account that earns 4.5% interest. If the interest is compounded annually, how much money will be in the account at the end of 5 years?
Some online banks offer “online bill pay.” What does this mean?
Which of the following are advantages of certificates of deposit (CDs) over savings accounts?I. CDs are more readily accessible than savings accounts.II. CDs offer greater interest rates than savings accounts.III. CDs have greater FDIC backing than savings accounts.
An investment of $7,650 earns interest at the rate of 5% and is compounded quarterly. What is the accumulated value of the investment at the end of 9 years?
Identify the following bank account.This account offers a good interest rate, but tends to require a certain minimum deposit. Usually, this account becomes mature in a matter of several months. You can withdraw money from this account before it becomes mature without penalty, but there is a limit to how frequently you can withdraw it.
Orlando invested $16,000 in an eight-year CD bearing 6.5% simple annual interest, but needed to withdraw $3,500 after five years. If the CD’s penalty for early withdrawal was one year’s worth of interest on the amount withdrawn, when the CD reached maturity, how much less money did Orlando earn total than if he had not made his early withdrawal?
Certain investments compound interest at different intervals. What effect does the size of the compounding interval have on the yield of the investment?
The same amount of principal is invested in different accounts earning the same interest rate. Which of the following accounts would have the greatest accumulated value at the end of one year?
Rate the following bank accounts from most to least liquid: CD, savings account, checking account, money market account.
Why do certificates of deposit tend to offer better interest rates than money market accounts?
An investment of $2,000 is earning interest at the rate of 6.2% compounded quarterly over 5 years. Approximately how much interest is earned on the investment?
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