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Problem #1. You invested $10,550 at 5.5% interest compounded monthly for 4 months. Manually calculate the compound amount and compound interest of your investment. (Example 1 in Chapter 11 should be your guide for this problem.) Show your work.

Problem #1. You invested $10,550 at 5.5% interest compounded monthly for 4 months. Manually calculate the compound amount and compound interest of your investment. (Example 1 in Chapter 11 should be your guide for this problem.) Show your work.

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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**Problem #1.** You invested $10,550 at 5.5% interest compounded monthly for 4 months. Manually calculate the compound amount and compound interest of your investment. (Example 1 in Chapter 11 should be your guide for this problem.) Show your work. **Problem #2.** (a) Use the compound interest formula to calculate the compound amount of $45,250 invested at 7% interest compounded monthly for 6 years. (b) You want to accumulate the compound amount you calculated in part (a) 3 years from now, instead of 6. Use the present value formula to calculate how much you should invest now at the same interest rate of 7% compounded monthly. Show your work.
Transcribed Image Text:**Problem #1.** You invested $10,550 at 5.5% interest compounded monthly for 4 months. Manually calculate the compound amount and compound interest of your investment. (Example 1 in Chapter 11 should be your guide for this problem.) Show your work. **Problem #2.** (a) Use the compound interest formula to calculate the compound amount of $45,250 invested at 7% interest compounded monthly for 6 years. (b) You want to accumulate the compound amount you calculated in part (a) 3 years from now, instead of 6. Use the present value formula to calculate how much you should invest now at the same interest rate of 7% compounded monthly. Show your work.
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