Question

1a.) Determine when, to the nearest year, $2,000 invested at 5% per year, compounded daily, will be worth $10,000.

1b.)Calculate, to the nearest cent, the future value *FV*
(in dollars) of an investment of $10,000 at the stated interest
rate after the stated amount of time.

6% per year, compounded daily (assume 365 days/year), after 12 years

1c.) Compute the specified quantity.

The simple interest on a $2,000 loan at 2% per year amounted to
$360. At what time *t* did the loan mature (in years)?

Answer #1

a.We use the formula:

A=P(1+r/365)^365n

where

A=future value

P=present value

r=rate of interest

n=time period.

10,000=2000*(1+0.05/365)^(365n)

(10,000/2000)=(1+0.05/365)^(365n)

5=(1+0.05/365)^(365n)

Taking log on both sides;

log 5=365n*log 1.00013699

n=1/365[log 5/log 1.00013699]

**=32 years(Approx)**

b.We use the formula:

A=P(1+r/365)^365n

where

A=future value

P=present value

r=rate of interest

n=time period.

A=10,000*(1+0.06/365)^(365*12)

=10,000*2.05431165

**=$20543.12(Approx)**

c.Simple interest=Principal*Interest rate*time period

360=2000*2%*time period

360=40*time period

time period=360/40

**=9 years**

1a.)Calculate, to the nearest cent, the present value of an
investment that will be worth $1,000 at the stated interest rate
after the stated amount of time. HINT [See Quick Example 4.]
5 years, at 5.2% per year, compounded weekly (52 times per
year)
1b.) Find the effective annual interest rate r of the
given nominal annual interest rate. Round your answer to the
nearest 0.01%.
13% compounded monthly
1c.) Compute the specified quantity.
You take out a 5 month,...

1a.) During 2008 the S&P 500 index depreciated by 37.6%.†
Assuming that this trend had continued, how much would a $6,000
investment in an S&P index fund have been worth after 9 years?
(Round your answer to the nearest cent.)
1b.)
A $4,000 loan, taken now, with a simple interest rate of 7% per
year, will require a total repayment of $6,240. At what time
t will the loan mature?

1a) Lucy invested $950 five years ago. Her investment paid 7.2%
interest compounded monthly. Lucy's twin sister Laurie invested
$900 at the same time. But Laurie's investment earned 8% interest
compounded quarterly. How much is each investment worth today?
1b) Carl is considering the purchase of an investment that will
pay him $12,500 in 12 years. If Carl wants to earn a return equal
to 7% per year (annual compounding), what is the minimum amount he
should be willing to...

The future value that accrues when $700 is invested at 5%,
compounded continuously, is S(t) = 700e0.05t where t is the number
of years. (Round your answers to the nearest cent.) (a) At what
rate is the money in this account growing when t = 4? $ per year
(b) At what rate is it growing when t = 10? $ per year

Candace invested $16,000 into a fund earning 11.0% interest
compounded 12 times per year. Calculate her balance after 16
years.
Round your answer to the nearest dollar. Do not include a dollar
sign.

Complete the table by finding the balance A when
P dollars is invested at rate r for t
years and compounded n times per year. (Round your answers
to the nearest cent.)
P = $5000, r = 7%,
t = 20 years
Fill in the blanks,
n
A
1
$
2
$
4
$
12
$
365
$
Continuous
$

Gordon invested $43,000 into a CD compounded quarterly with an
annual interest rate of 3.05%. Determine how much money Gordon
would have after 8 years. Round your answer to the nearest cent.
Provide only a numerical answer (For example, if the final amount
came to $5,023.97, then you would input 5023.97).

1a. Of the choice listed below, with all else equal,
which choice would be the most beneficial in your section of a
savings account that would earn the most interest over
time?
(a) An account that is compounded yearly at 5.7% annual
interest.
(b) An account that is compounded quarterly at 3.05% annual
interest.
(c) An account that is compounded yearly at 3.4% annual
interest.
(d) An account that is compounded monthly at 3.5% annual
interest.
1b. Second, The Smith...

Find the amount to which $700 will grow under each of these
conditions:
14% compounded annually for 7 years. Do not round intermediate
calculations. Round your answer to the nearest cent.
$
14% compounded semiannually for 7 years. Do not round
intermediate calculations. Round your answer to the nearest
cent.
$
14% compounded quarterly for 7 years. Do not round intermediate
calculations. Round your answer to the nearest cent.
$
14% compounded monthly for 7 years. Do not round intermediate...

1)We invest $50 per month in an account that pays 3% interest
per year compounded continuously. How much is our account worth
after 7 years? Round your answer to the nearest penny.
2)We invest $50 per month in an account that pays 3% interest
per year compounded continuously. If we make these deposits for 7
years, what is the present value of this account? Round your answer
to the nearest penny.

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 4 minutes ago

asked 4 minutes ago

asked 4 minutes ago

asked 12 minutes ago

asked 22 minutes ago

asked 22 minutes ago

asked 23 minutes ago

asked 24 minutes ago

asked 30 minutes ago

asked 39 minutes ago

asked 44 minutes ago

asked 44 minutes ago