Alonzo wants to buy a bond that will mature to $5000 in seven years. How much should he pay for the bond now if it earns interest at a rate of 4% per year, compounded continuously?

Q: A man needed P250, 000 at the end of 3 years, how much money must he deposit quarterly in an…

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Q: Find the amount due at the end of 8 years and 6 months if P4, 000 is invested at 7% compounded…

A: Principal amount:  $ 4000 Interest Rate:  r = 7% Time Period:  t = 8 year 6 months

Q: Pesse Jinkman, a chemistry student at PCC, will be depositing $15,000 at the end of every quarter…

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Q: Find the investment needed today to make $ 100,000 in 5 years with a simple interest rate of 8% per…

A: Given data÷ A=$100,000 t=5 years r=8% =0.08 per year

Q: Trinh invested $3800 at an annual interest rate of 8%, compounded annually. How much will she have…

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Q: At the time of her grandson's birth, a grandmother deposits $2000 in an account that pays 8.5%…

A: the principal value = $2000 time period is 21 years which when converted into months is…

Q: Jayden just graduated from college and owes $19,400 on his student loans. The bank charges an annual…

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Q: Rosa Burnett needs $7,000 in three years to make the down payment on a new car. How much must she…

A: Given information Future value=$7,000 Rate of interest r=0.5% compounded annually ⇒r=0.5100=0.005…

Q: A mechanic borrows $7000 to expand his garage. The interest rate is 14% compounded quarterly with…

A: Given that The loan amount PV=$7000 Interest rate r=14%=14100=0.14Compounded quarterly…

Q: Amelia is going to invest in an account paying an interest rate of 2.3% compounded quarterly. How…

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Q: a wants to have $200,000 to buy a smaller retirement home in 20 years. If they can earn 4.5%…

A: To calculate the amount that Mika should deposit in his account now to have $200,000 in 20 years.…

Q: Frank Steed wants to open a camera shop. How much must he deposit now at 6% interest compounded…

A: To find the amount which should be deposited now at 6% interest compounded monthly to have $25,000…

Q: Henry has inherited $18 000 and would like to invest the money to pay for new car in two years. If…

A: The amount he invested for new car is:  P = $18,000 Interest rate:  r = 4.9% Interest is compounded…

Q: A major shipping company is planning to purchase new cargo ships. It wants to borrow $1100 million…

A: Here we use compound interest formula to find the interest that company have to pay quarterly.   So,…

Q: venture promises a 7% annual interest rate compounded once a year. For how many years should Roger…

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Q: If you invest $3000 at 5% compounded quarterly, how long will it take the account to double in time?…

A: P=3000,  r=5%=0.05,  n=4