Darwin has a capital of $ 7100 which he invests for 3 years at 7.6 % p. a. a)How much will he receive come maturity time if the interest is compounded annually? Round to the nearest 100th. b)How much will he received come maturity time if the interest is compounded semi-annually? Round to the nearest 100th . c)How much will he receive come maturity time if the interest is compounded quarterly? Round to the nearest 100th .
Darwin has a capital of $ 7100 which he invests for 3 years at 7.6 % p. a.
a)How much will he receive come maturity time if the interest is compounded annually? Round to the nearest 100th.
b)How much will he received come maturity time if the interest is compounded semi-annually? Round to the nearest 100th .
c)How much will he receive come maturity time if the interest is compounded quarterly?
Round to the nearest 100th .
Then, George Green wishes to invest $ 8000 that he saved from his summer job. His bank offers 3.75 % for a one-year term investment or 3.5 % for a six-months term.
a)How much will George receive (capital plus interest) after one year if he invests at the one-year rate? Round to the nearest one.
b)How much will he receive (capital plus interest) after one-year if he invests for six months at a time at 3.5 % each time? This means George took the interest from the first investment transaction and included it in the principal for the second transaction. Round to the nearest 100th.
c)What would the one-year rate have to be to yield the same amount of interest when investing for six months at a time at 3.5% each time? Give your answer as a percentage approximated to the nearest 100th .
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