Question

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

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)?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose $5,400 is invested in an account at an annual interest rate of 3.9% compounded continuously....
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...
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...
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)...
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...
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...
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...
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...
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....
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...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT