Quiz #2

1. If you deposit $2000 into an account with an interest rate of

10% compounded monthly, what would the effective quarterly
interest rate be for this account?
ie=(1+r/m)^k-1 = (1+0.1/12)^3-1 = 0.025208912
2. If you made $200 weekly deposits into a savings account how
much money would you have at the end of 24 months? The
savings account has 12% interest compounded monthly.
F=A(F/A,i,N)= 800[ ((1+0.12/12)^24-1) /(0.12/12)] =21578.77
 Quiz #2
1. If you deposit $2000 into an account with an interest rate of
10% compounded weekly, what would the effective quarterly
interest rate be for this account?
ie=(1+r/m)^k-1 = (1+0.1/52)^13-1 = 0.025291
ie=(1+r/m)^k-1 = (1+0.1/52)^12-1 = 0.023323

2. How much do you need to deposit into a savings account each

month if you want to have $3000 at the end of 24 months?
The savings account has 12% interest compounded monthly.
A=F(A/F,i,N)= 3000[(0.12/12)/((1+0.12/12)^24-1)] =111.22