3. Mary needs to choose between two investments: One pays 5% compounded annually, and the other pays 4.9%compounded monthly. If she plans to invest $22,000 for 3 years, which investment should she choose? How muchextra interest will she earn by making the better choice? For all word problems, your solution must be presented ina sentence in the context of the problem.

Let's calculate the future value of both investments to determine which one Mary should choose.For…

Answered: 3. Mary needs to choose between two…

Intermediate Algebra

10th Edition

ISBN:9781285195728

Author:Jerome E. Kaufmann, Karen L. Schwitters

Publisher:Jerome E. Kaufmann, Karen L. Schwitters

Chapter2: Equations, Inequalities, And Problem Solving

Section2.S: Summary

Problem 8S: What interest rate would you need to get to double an investment of 200 in eight years?

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Similar questions

What interest rate would you need to get to double an investment of 200 in eight years?
You inherit one million dollars. You invest it all in three accounts for one year. The first account pays 3% compounded annually, the second account pays 4% compounded annually, and the third account pays 2% compounded annually. After one year, you earn $34,000 in interest. If you invest four times the money into the account that pays 3% compared to 2%, how much did you invest in each account?
Karl has two years to save $10000 to buy a used car when he graduates. To the nearest dollar, what would his monthly deposits need to be if he invests in an account offering a 4.2% annual interest rate that compounds monthly?
You inherit one hundred thousand dollars. You invest it all in three accounts for one year. The first account pays 4% compounded annually, the second account pays 3% compounded annually, and the third account pays 2% compounded annually. After one year, you earn $3,650 in interest. If you invest five times the money in the account that pays 4% compared to 3%, how much did you invest in each account?
Last year, at Haven's Pond Car Dealership, for a particular model of BMW, Jeep, and Toyota, one could purchase all three cars for a total of $140,000. This year, due to inflation, the same cars would cost $151,830. The cost of the BMW increased by 8%, the Jeep by 5%, and the Toyota by 12%. If the price of last year's Jeep was $7,000 less than the price of last year's BMW, what was the price of each of the three cars last year?
What has been your past experience solving word problems? Where do you see yourself moving forward?
Suppose you wish to save $3,720. If you have $3,000 and invest it at 8% simple interest, how long will it take you to obtain $3,720?
How much would a homeowner receive with actual cash-value coverage and replacement cost coverage for a 3-year-old sofa destroyed by a fire? The sofa would cost $810 to replace today, whereas it cost $628 3 years ago, and it has an estimated life of 6 years. With actual cash-value coverage, the amount the owner would receive for the sofa would be $410. (Round to the nearest dollar.)

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