I need help with number 52 **Section 4.7: Financial Models**Page 347**51. Comparing IRA Investments**Will invests $2000 in his IRA in a bond trust that pays 9% interest compounded semiannually. His friend Henry invests $2000 in his IRA in a certificate of deposit that pays $8\frac{1}{2}\%$ compounded continuously. Who has more money after 20 years, Will or Henry?**52. Comparing Two Alternatives**Suppose that April has access to an investment that will pay 10% interest compounded continuously. Which is better: to be given $1000 now so that she can take advantage of this investment opportunity or to be given $1325 after 3 years?**53. College Costs**The average annual cost of college at 4-year private colleges was $29,056 in the 2012–2013 academic year. This was a 4.2% increase from the previous year.*Source: The College Board*(a) If the cost of college increases by 4.2% each year, what will be the average cost of college at a 4-year private college for the 2030–2031 academic year?(b) College savings plans, such as a 529 plan, allow individuals to put money aside now to help pay for college later. If one such plan offers a rate of 4% compounded continuously, how much should be put in a college savings plan in 2015 to pay for 1 year of the cost of college at a 4-year private college for an incoming freshman in 2030?**54. Analyzing Interest Rates on a Mortgage**Colleen and Bill have just purchased a house for $650,000, with the seller holding a second mortgage of $100,000. They promise to pay the seller $100,000 plus all accrued interest 5 years from now. The seller offers them three interest options on the second mortgage:(a) Simple interest at 12% per annum

I have appended the formula used in the solution procedure

Comparing Two Alternatives Suppose that April has access to an investment that will pay 10% interest compounded continuously. Which is better: to be given $1000 now so that she can take advantage of this investment opportunity or to be given $1325 after 3 years?

Comparing Two Alternatives Suppose that April has access to an investment that will pay 10% interest compounded continuously. Which is better: to be given $1000 now so that she can take advantage of this investment opportunity or to be given $1325 after 3 years?

Calculus: Early Transcendentals

8th Edition

ISBN:9781285741550

Author:James Stewart

Publisher:James Stewart

Chapter1: Functions And Models

Section: Chapter Questions

Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...

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