FIN 571 TUTOR Motivated Minds/fin571tutor.com FIN 571 TUTOR Motivated Minds/fin571tutor.com | Page 36

11. (Set 2)
First City Bank pays 6 percent simple interest on its savings account
balances, whereas Second City Bank pays 6 percent interest compounded
annually.
If you made a $60,000 deposit in each bank, how much more money would
you earn from your Second City Bank account at the end of 10 years? (Do
not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
11450.86
12.a.
Compute the future value of $2,000 compounded annually for
10 years at 7 percent. (Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
b.
Compute the future value of $2,000 compounded annually for 10
years at 12 percent. (Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
c.
Compute the future value of $2,000 compounded annually for 15
years at 7 percent. (Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
12. (Set 2)
10.00 points