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Please the 3 questions attached to this email or b...

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Please the 3 questions attached to this email or below ? 1. Bank A offers a 4% nominal annual interest rate, compounded monthly on its savings account, Bank B offers the same effective annual return, but interest compounds quarterly. What nominal rate does Bank B offer on its savings account ? 2. You just deposited $2,500 in a bank account that pays 4% nominal annual interest rate, compounded quarterly. If another $5,000 is added to the account one year from now and another $7,500 two years ( 8 quarters) from now, how much will be in the account 3 years ( 12 quarters) from now? 3. Person A turned 25 today and is planning to save $1,000 per year for retirement, with their first deposit made one year from today and the last deposit made on her 65th bday. The expected is expected to provide a 12% return per year throughout their lifetime. Person A will make a total of 25 annual withdrawals-with the first one being when they are 66 years old and the last withdrawal made when she is 90. After the last withdrawal there will be $1,000,000 left in the account? Under these assumptions how much can they spend in each year after they retire? Thanks

 

Paper#5633 | Written in 18-Jul-2015

Price : $25
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