Question

Suppose $12,500 is invested in an account which offers 3.25% interest compounded quarterly (4 times a year).

(a) Express the amount A in the account as a function of the term of the investment t in years.

(b) How much would be in the account in 7 years (assuming non deposits or withdrawals are made)?

(c) How long will it take for the initial investment to double (round the nearest tenth of a year)?

Answer #1

Suppose $5,400 is invested in an account at an annual interest
rate of 3.9% compounded continuously. How long (to the nearest
tenth of a year) will it take the investment to double in size?
Answer:

10. Suppose $14,000 is invested in a quarterly compounded
account at 3.58%. Approximately how long will it take for the
balance to reach $37,100?
____ year (Round the answer to the nearest tenth of a
year.)
13. If income tax varies directly with income and a person
earning $32,000 per year pays $8,320 in taxes, how much will a
person earning $46,000 per year pay?
$________

Rachel invested her savings in a bank at 3.00% compounded
quarterly. How much money did she invest to enable withdrawals of
$4,000 at the beginning of every 6 months from the investment for 8
years, if the first withdrawal is to be made in 11 years?

Jonathan invests $8,980 in a bank. The bank pays 5.8% interest
compounded quarterly.
(SLO #6)
How long must he leave the money in the bank for it to double?
Round to nearest tenth of a year. Show your work.
How long will it take to triple? Round to nearest tenth of a
year. Show your work.
If Jonathan is given the choice to invest his money at 5.8%
interest compounded quarterly for 5 years or invest his money
compounding...

Finding the interest rate and the number of
years
The future value and present value equations also help in
finding the interest rate and the number of years that correspond
to present and future value calculations.
If a security of $4,000 will be worth $4,867 five years in the
future, assuming that no additional deposits or withdrawals are
made, what is the implied interest rate the investor will earn on
the security?
2.40%
3.00%
4.00%
4.80%
If an investment of...

You have $10,000 to invest for two years. Your bank offers 5%
interest, compounded continuously for funds in a money market
account. Assuming no additional deposits or withdrawals, how much
money will be in that account at the end of two years?

5. Finding the interest rate and the number of
years
The future value and present value equations also help in
finding the interest rate and the number of years that correspond
to present and future value calculations.
If a security currently worth $12,800 will be worth $16,843.93
seven years in the future, what is the implied interest rate the
investor will earn on the security—assuming that no additional
deposits or withdrawals are made?
0.19%
7.60%
1.32%
4.00%
If an investment...

Suppose $40,000 is invested in an account that returns 7% per
year compounded continuously. (Round your answers to one decimal
place.)
a. how long will it take for the investment to double? ____
yrs
b. How long will it take for the investment to triple? _____
yrs

An initial deposit is made of $12,000 in an account paying 4%
interest compounded continuously. a. How much will the account be
worth in 6 years? b. How long will it take the account to
double?

Suppose you invest $10,000 in an account which pays 4% interest
per year compounded quarterly. Use the formula F = P(1 +
(i/m))mt where F is the balance in your account t years
into the future, P = the amount of your initial deposit, i is the
annual interest rate, and m is the number of times per year you are
paid interest.
a. Find the function which gives
your balance in the account t years after you open...

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