Statistics Solutions

(See Solution) You have $760,000 in your bank account. The interest rate in your account is 5%. Solve for the following: How much interest will you accumulate

Question: You have $760,000 in your bank account. The interest rate in your account is 5%. Solve for the following:

  1. How much interest will you accumulate if interest is compounded annually over the next five years?
  2. How much interest will you earn in your account over the next five years with continuous compounding? You can use a scientific calculator or the =Exp() function in Microsoft Excel. If you are crafty you can also find web pages that will do the calculations for you. Regardless, show your steps and your work.

    Take the current amount you have in your checking or savings account. Suppose you have a choice of keeping your money for five years in a savings account with a 2% interest rate, or in a five year certificate of deposit with and interest rate of 4.5%. Calculate how much interest you would earn with each option over five years’ time with continuous compounding.
    Price: $2.99
    Solution: The downloadable solution consists of 2 pages
    Deliverable: Word Document


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