Question

1. Charles invests his life savings of $4000 in an account that earns him an annual...

1. Charles invests his life savings of $4000 in an account that earns him an annual interest rate of 8%, compounded quarterly. How long will it take for this account to attain a value of $6000? show all work(Do not simplify your answer.)

2.  Henry invests $10,000 at an interest rate of 4%, compounded continuously. Prove that the amount of money Henry has after 25 years is more than $25,000, without using a calculator.

Math   Calculus   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Teresa invests $4,000 in an account that compounds interest continuously and earns 5.5%. How long will...
Teresa invests $4,000 in an account that compounds interest continuously and earns 5.5%. How long will it take for her money to reach $80,000? Round to the nearest tenth of a year
1. John wishes to make a quarterly deposit into his savings account so that at the...
1. John wishes to make a quarterly deposit into his savings account so that at the end of 10 years the account balance will be $10,000. If the account earns 6% annual interest, compounded quarterly, how much should he deposit each quarter? 2. The maintenance on a machine is expected to be $155 at the end of the first year, then increasing by $35 each year for the next 7 years. What sum of money would need to be set...
$10,000 is deposited into a savings account that earns 3% per annum compounded quarterly. (a) How...
$10,000 is deposited into a savings account that earns 3% per annum compounded quarterly. (a) How much interest will be credited in the second month? (b) How much interest will be credited in the second year?
1- Henry Newman will invest $10,580 today in a fund that earns 6% annual interest. How...
1- Henry Newman will invest $10,580 today in a fund that earns 6% annual interest. How many years will it take for the fund to grow to $18,947? 2- Donald Jackson invests $58,800 at 10% annual interest, leaving the money invested without withdrawing any of the interest for 10 years. At the end of the 10 years, Donald withdraws the accumulated amount of money. Compute the amount Donald would withdraw assuming the investment earns interest compounded semiannually.
Michael invests $100 into a savings account. After 5 years, he closes the account and withdraws...
Michael invests $100 into a savings account. After 5 years, he closes the account and withdraws his balance of $124. Assuming simple interest, what is the annual interest rate? Assuming that interest is compounded semiannually, what is the annual interest rate?
Sam retires today at the age of 65 and invests his life savings into an account...
Sam retires today at the age of 65 and invests his life savings into an account that is guaranteed to earn 4.12% per year. Sam expects to live to the age of 87, withdraw $0.112mln from the account at the end of each year, and leave his heirs $1.818mln (this amount will be the account balance at the time of his death). How much is Sam putting in the account today, in $ million? Round to the nearest $0.001 million....
When Michael was born, his grandmother arranged to deposit $5000 in an account for him at...
When Michael was born, his grandmother arranged to deposit $5000 in an account for him at 8% annual interest compounded continuously. His grandmother plans to add to the account continuously at the rate of $1000 a year. How much will be in the account when Michael is 18?
A friend was left $50,000 by his uncle. He has decided to put it into a...
A friend was left $50,000 by his uncle. He has decided to put it into a savings account for the next year or so. He finds there are varying inter- est rates at savings institutions: 23/8% compounded annually, 21/4% compounded quarterly, and 21/8% compounded continuously. He wishes to select the savings institution that will give him the highest return on his money. What interest rate should he select?
Determine the amount of money in a savings account at the end of 10 years, given...
Determine the amount of money in a savings account at the end of 10 years, given an initial deposit of $10,000 and an annual interest rate of 16 percent when interest is compounded: Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods Future value a. Annually b. Semiannually c. Quarterly
Mr. Clark makes a deposit at the beginning of every three months into a savings account...
Mr. Clark makes a deposit at the beginning of every three months into a savings account that earns interest at 4.6​% compounded quarterly. He saves for six years, then converts his savings into an annuity that pays him $650 at the beginning of every three months for ten years. What is the size of the deposit he makes while he is​ saving?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT