18. To what amount will $10,000 grow after 25 years if it earns: a. 4% compounded annually? b. 4% compounded semiannually? c. 4% compounded quarterly? d. 4% compounded monthly?

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Please answer questions 18, 19 and 20 accurately to the nearest cent or two decimal places. Thank you. 

18. To what amount will $10,000 grow after 25 years if it
earns:
a. 4% compounded annually? b. 4% compounded
semiannually?
c. 4% compounded quarterly? d. 4% compounded
monthly?
19. What is the maturity value of a $12,000 loan for 18
months at 7.2% compounded quarterly? How much
interest is charged on the loan?
20. How much more will an investment of $10,000 be
worth after 25 years if it earns 6% compounded
annually instead of 5% compounded annually?
Calculate the difference in dollars and as a
percentage of the smaller maturity value.
Transcribed Image Text:18. To what amount will $10,000 grow after 25 years if it earns: a. 4% compounded annually? b. 4% compounded semiannually? c. 4% compounded quarterly? d. 4% compounded monthly? 19. What is the maturity value of a $12,000 loan for 18 months at 7.2% compounded quarterly? How much interest is charged on the loan? 20. How much more will an investment of $10,000 be worth after 25 years if it earns 6% compounded annually instead of 5% compounded annually? Calculate the difference in dollars and as a percentage of the smaller maturity value.
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