Question

5. James wants to invest $85000. He can invest the money at 7.3% with interest compound monthly for 30yr or he can invest at 7.1% with interest compounded continuously for 30yr. Which option results in more total interest? Show your work

10. Solve the problem. The population of a country is modeled by the function P(t) = 17.9e 0.01264t where P(t) is the population (in millions) t years after January 1, 2000. Use the model to predict the year during which year the population will reach 20 million if this trend continues.

12. Solve the problem. A $45,000 inheritance is invested for 15yr compounded quarterly and grows to $109,940. Find the interest rate. Round to the nearest percent.

Answer 1