On July 1, 2001, a savings account has $1000. This account earns interest at an...
50.1K
Verified Solution
Link Copied!
Question
Finance
On July 1, 2001, a savings account has $1000. This account earns interest at an annual rate of 2.5% compounded continuously. A competing bank is attempting to attract new customers by offering to add $25 immediately to any new account opened with a minimum $1000 deposit, and the new account would earn interest at the annual rate of 2.5% compounded semiannually. To choose one of the following three options on July 1, 2001, find the accumulated amount on July 1, 2001, for each option in parts (a) through (c) below.
(a) Leave the money at the first bank.
The accumulated amount is
$
(Do not round until the final answer. Then round to the nearest cent as needed.)
(b) Move the money to the competing bank.
The accumulated amount is
$
(Do not round until the final answer. Then round to the nearest cent as needed.)
(c) Leave half the money at the first bank and move the other half to the competing bank.
The accumulated amount is
$
(Do not round until the final answer. Then round to the nearest cent as needed.)
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.