If you have a bank account whose principal = $1000, and your bank compounds the interest twice a year at an interest rate of 5%, how much money do you have in your account at the year's end?

1,050.63

Explanation:

The amount in the bank will be the same as the future value of the principal amount at 5% interest. The formula for calculating compound interest is

FV = PV × (1+r)n

where FV = Future Value

PV = Present Value

r = annual interest rate

n = number of periods

In this case, Pv =$1000, r =5%, n =2. since there two periods in the year, the interest rate will be divided by two, 5%/2= 2.5%

FV= 1000 x (1+2.5/100) 2

Fv = 1000 x ( 1 + 0.025)2

fv = 1000 x 1.050625

fv= 1,050.625

The amount will be $ 1,050.625

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi