A} 3.99 % {B} monthly {C} $ 145,399.00 {D} $ 163,954.00 {E} $ 156,510.00 {F} 14 months {G} quarterly {H} 5.49 % {I} semi-annually Mini-Case Jagmeet is hoping to start a non-profit organization to help families with critically-ill children pay for the travel and accommodation costs associated with seeking medical care outside of the Greater Sudbury Area. As a graduate of of the General Business program at Cambrian College, he applied for and received a large grant. During the planning phase of his venture, he invested all of this grant money at {A} compounded {B}. After two years of compound interest, the invested grant money accumulated to {C}. Conveniently, this was the exact amount needed to fund his non-profit, and to begin helping the community.. PART A What was the original grant amount invested? PART B What rate, compounded annually, would have resulted in the same accumulated value {C}? PART C Using your answer from PART A, how long (in months) would it have taken for Jagmeet's grant to accumulate to {D} if he did not use/withdraw any of the funds? Assume the same interest rate of {A} compounded {B} throughout this period.
| STUDENT ID (last 6 digits only) | 145399 | ||||
| {A} | 3.99 | % | |||
| {B} | monthly | ||||
| {C} | $ 145,399.00 | ||||
| {D} | $ 163,954.00 | ||||
| {E} | $ 156,510.00 | ||||
| {F} | 14 | months | |||
| {G} | quarterly | ||||
| {H} | 5.49 | % | |||
| {I} | semi-annually |
Mini-Case
Jagmeet is hoping to start a non-profit organization to help families with critically-ill children pay for the travel and accommodation costs associated with seeking medical care outside of the Greater Sudbury Area. As a graduate of of the General Business program at Cambrian College, he applied for and received a large grant. During the planning phase of his venture, he invested all of this grant money at {A} compounded {B}.
After two years of
PART A
What was the original grant amount invested?
PART B
What rate, compounded annually, would have resulted in the same accumulated value {C}?
PART C
Using your answer from PART A, how long (in months) would it have taken for Jagmeet's grant to accumulate to {D} if he did not use/withdraw any of the funds? Assume the same interest rate of {A} compounded {B} throughout this period.
PART D
If Jagmeet had invested the grant money (calculated in PART A) in a different local bank, it would have accumulated to {E} in {F} months instead of in 2 years (24 months). What is the interest rate compounded {G} charged by the different local bank?
PART E
Using your answer from PART A, and assuming no withdrawals or deposits occur, how much would Jagmeet have after two years if the investment earned {A} compounded {B} for the first year, and {H} compounded {I} for the second year?
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