Introduction to Fixed Income
If you invest \(1800\) dollars in savings account that pays \(5\) percents compound interest, then how long does it take to double your money?
Suppose that \(1000\) dollars is deposited in a bank paying an annual interest rate of \(4\) percent compounded continuously. What will be the balance after \(3\) years?
If you put \(1800\) dollars in a savings account that pays \(4\) percent simple interest every year, what will be the balance in the account after \(6\) years?
If you put \(600\) dollars in a savings account that pays \(2\) percent annual interest compounded yearly, what will be the year-end balance in dollars after 3 years?
If you put \(600\) dollars in a savings account that pays \(3\) percent simple interest every year, how much interest will you earn after \(3\) years?