Question

Jeffrey invested money in a mutual fund for seven years. The interest rate on the mutual fund was 5% compounded quarterly for the first three years and 3% compounded semi-annually for the next four years. At the end of the seven years, Jeffrey's mutual fund had accumulated to $35,198.50.

**a.** Calculate the amount that was in the mutual
fund after the first three years when the interest rate
changed.

Round to the nearest cent

**b.** Calculate the amount that was invested in
the mutual fund at the beginning of the period.

Round to the nearest cent

**c.** Calculate the total amount of interest
earned from this investment.

Answer #1

1)Sophie invested an amount of $24,000 in a mutual fund. After 3
years and 3 months the accumulated value of her investment was
$25,815.47. What is the quarterly compounded nominal interest rate
of the investment?
2)Helen heard that she could triple her money in 27 years if she
invested it in her friend's telecommunications business. What
nominal interest rate compounded quarterly does the business
offer?
3)If an investment grew to $15,000 in 2 years and the interest
amount earned was...

Ali invested $2,100 at the beginning of every 6 months in an
RRSP for 11 years. For the first 5 years it earned interest at a
rate of 3.50% compounded semi-annually and for the next 6 years it
earned interest at a rate of 6.40% compounded semi-annually.
a. Calculate the accumulated value of his
investment at the end of the first 5 years.
$63,900.39
$64,865.00
$22,733.34
$23,131.17
b. Calculate the accumulated value of her
investment at the end of 11...

Predict the expression that represents the total after
a) $100 is invested at 6% interest, compounded semi-annually,
for 10 years.
b) $100 is invested at 6% interest, compounded semi-annually,
for 15 years.
c) $100 is invested at 6% interest, compounded quarterly, for
1 year.
d) $100 is invested at 6% interest, compounded quarterly, for
20 years.
Enter the expressions into a calculator. Round answers to the
nearest cent.

1. To save for college, parents of a newborn child invest
$12,000 in a mutual fund at 10% interest, compounded semiannually,
how much money will be in the account when the child is 18 years
old? Round to the nearest cent.
2. Find out how long it takes a $2500 investment to double if it
is invested at 7% compounded quarterly. Round to the nearest tenth
of a year.

An investment of
$4885.45
earns interest at
4%
per annum compounded
semi-annually
for
4
years. At that time the interest rate is changed to
7.2%
compounded
quarterly.
How much will the accumulated value be
4.5
years after the change?
The accumulated value is
$.
(Round the final answer to the nearest cent as needed. Round
all intermediate values to six decimal places as needed.)

Evans invested $50,000 today in a mutual fund earning 5%
interest, compounded annually.
Round your answer to the nearest whole number (for example,
enter 51 for 50.5555).
Do not use negative signs with any of your answers.
a.
What is the value of the mutual fund in 5 years?
Answer
b.
What is the value of the mutual fund in 20 years?
Answer

We know that when a particular amount of money P, called the
principal, is invested at the interest rate r and is compounded n
times a year, the amount of A of money accumulated after t years is
A(t)=P(1+r/n)^nt
Rounded to the nearest cent, find the amount of money
accumulated if $ 5 , 000 is invested for 2 years at 6 % interest
and is compounded.
Quarterly: $
Monthly: $
Daily(assuming 365 days in a year): $
Coutinuously: $

Li Jun had a balance of $4,000 in his RRSP. In addition to this,
he invested $500 at the end of every 3 months for 8 years. His RRSP
earned 4.00% compounded quarterly for the first 2 years and 4.85%
compounded quarterly for the rest of the period.
a. What is the accumulated value of the balance
of $4,000 at the end of the time period?
Round to the nearest cent
b. What is the accumulated value of the annuity...

1. Suppose that P200,000.00 is invested at a certain rate of
interest compounded annually for two years. If the accumulated
interest at the end of 2 years is P42,000.00, find the rate of
interest.
2. A loan for P170,000 is to be paid in three years
at the amount of P185,000 compounded annually. What is the
effective rate of money?
3. If P3000 accumulates to P4500 when invested at a simple
interest for ten years, what is the rate of interest?

The maturity value of a savings account that belonged to Peach
Company was $43,133.50. The interest charged for the first 3 years
was 6% compounded semi-annually, and 4% compounded quarterly for
the next 4 years.
a. Calculate the amount that was deposited in
the savings account at the beginning of the period.
b. Calculate the total amount of interest
earned from this investment.

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