Question

3. Matt invested $5,500 into an account earning 2.5% APR
compounded continuously. What will his balance be after seven
years?

4. How much money should be deposited in an account today that
earns 3.5% compounded monthly so that it will accumulate to $10,000
in 8 years?

Answer #1

We know that if the compound rate per annum is r% ,the time in years is t and the principle is P, then the amount of money after t years is

3) In this case, P = $5500, r = 2.5 and t=7. Hence, his balance after 7 years would be

4) Let us assume that $P should be deposited in an account, so that at rate r% = 3.5% per annum after t=8 years, it would accumulate to $10000. Then, we get

Hence, $7594.12 should be deposited.

a. If an account has an APR of 100 r % compounded continuously,
its annual growth factor is
b. Based on your answer to part (a), the accounts t -year growth
factor must then be
c.Based on your answers to parts (a) and (b), what is the
account value after t years if P dollars is initially invested in
the account?
d.Therefore, the function A that models the account's value
after t years if interest is compounded continuously is (use...

If you put $100,000 in to a bank account earning 3% interest,
how much will you have in 5 years if the 3% is an annually
compounded APR? What if it is a semiannually compounded APR? What
if it is a monthly compounded APR? What if it is a continuously
compounded APR?

Jake puts his money in account earning 7% compounded annually
and wants to leave it there until it reaches ten times its original
value.
How long must he leave the money in the account?
How long would it take if the 7% APR was compounded monthly
instead of annually?

Q1 What is the future value in seven years of 1200 invested in
an account of annual percentage rate of 8 percent, compounded semi
annually.
B What is the future value in seven years of 1200 invested in an
account of annual percentage rate of 8 percent, compounded
annually.
C What is the future value in seven years of 1200 invested in an
account of annual percentage rate of 8 percent, compounded
monthly.
D What is the future value in...

1) You deposit $500 each month into an account earning 3%
interest compounded monthly.
a) How much will you have in the account in 25 years?
b) How much total money will you put into the account?
c) How much total interest will you earn?
2) Suppose you invest $190 a month for 6 years into an account
earning 7% compounded monthly. After 6 years, you leave the money,
without making additional deposits, in the account for another 21
years....

You deposit $2000 in an account earning 3% interest compounded
monthly
How much will you have in the account in 20 years?
How much interest will you earn?
You deposit $10,000 in an account earning 4% interest compounded
monthly.
How much will you have in the account in 25 years?
How much interest will you earn?

8) If you invest $5,650 in an account paying 8.65% compounded
continuously,
how much money will be in the account at the end of 10 years?
9)You have agreed to pay off an $8,000 loan in 30 monthly
payments of
$298.79 per month. The annual interest rate is 9% on the unpaid
balance.
a) How much of the rst month's payment will apply towards reducing
the principal
of $8,000?
b)What is the unpaid balance (on the principal) after 12 monthly...

You have deposited $10,000 in a bank earning interest at 7% p.a.
compounded quarterly for four years and five months. At that time,
the interest rate changes to 6% p.a. compounded monthly. What is
the value of the deposit three years after the change in the rate
of interest?
What nominal annual rate compounded quarterly is equivalent to
7.5% p.a. compounded monthly?
You have decided to deposit $500 in the Montreal bank at the end
of each quarter for seven...

Matt recently deposited $24,500 in a savings account paying a
guaranteed interest rate of 3 percent for the next 10 years.
Required:
If Matt expects his marginal tax rate to be 22.00 percent for
the next 10 years, how much interest will he earn after-tax
interest for the first year of his investment?
How much interest will he earn after-tax interest for the
second year of his investment if he withdraws enough cash every
year to pay the tax on...

You have $4,000, which is invested in a savings account earning
6.50 percent nominal interest, compounded monthly. Your current
budget allows you to invest $250 per month which you will add to
your account at the end of every month. How much will you have
after five years?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 5 minutes ago

asked 7 minutes ago

asked 13 minutes ago

asked 23 minutes ago

asked 23 minutes ago

asked 25 minutes ago

asked 28 minutes ago

asked 28 minutes ago

asked 34 minutes ago

asked 34 minutes ago

asked 39 minutes ago

asked 51 minutes ago