Suppose that P dollars in principal is invested in anaccount earning 2.1% interest compoundedcontinuously. At the end of 2 yr, the amount in theaccount has earmed $193.03 in interest.a. Find the original principal. Round to the nearestdollar. (Hint: Use the model A = Pe" and substituteP + 193.03 for A.)b. Using the original principal from part (a) and the modelA = Pe", determine the time required for the investmentto reach $6000. Round to the nearest tenth of a year.

A=P+193.03 r- 0.021 t=2 years Since A=Pert Therefore, P+193.03= Pe 0.21*2 P+193.03/P= e0.042…

Answered: Suppose that P dollars in principal is…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A bank features a savings account that has an annual percentage rate of r=3.4% with interest compounded weekly. Alfonso deposits $11,500 into the account. The account balance can be modeled by the exponential formula S(t)=P(1+r/n)^nt, where S is the future value, P is the present value, rr is the annual percentage rate, nn is the number of times each year that the interest is compounded, and tt is the time in years. What values should be used for P, r, and n?P= , r= , n= How much money will Alfonso have in the account in 10 years?Answer = $ .Round answer to the nearest penny. What is the effective annual rate for the savings account?effective rate = %.Round answer to 3 decimal places.
Suppose $1,200 is deposited into an account which has an annual percentage rate of 9.81% per year. Assume it remains in the account for 18 years and no additional money is added to the account other than interest. (a) Complete the boxes below to write an expression for the amount (in dollars) at year x = 18, of assuming interest is compounded annually. Do not round any values. You can enter arithmetic expressions (containing +, -, *, /, or ^) in any of these boxes. Number 1200 •( Number What is the value in year x = 18 of an investment of $1,200 dollars which pays 9.81% compounded annually? $ Number (Round to the nearest 0.01 dollars) (b) Complete the boxes below to write an expression for the amount (in dollars) at year x = 18, assuming interest is compounded weekly (52 times per year). Do not round any values. You can enter arithmetic expressions (containing +, –, *, /, or ^) in any of these boxes. Number 1200 ( Number What is the value in year x = 18 of an investment of $1,200…
Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round your answers to the nearest cent. CompoundAmount Term ofInvestment NominalRate (%) InterestCompounded PresentValue CompoundInterest $28,500 18 months 4 semiannually $ $
An investment accumulates at a force of interest δt = 0.01t / (3 + 0.01t^2) . Find the present value at time t = 0 of $3,900 due at the end of 7.5 year.
Compute for the simple interest earned given the principal P, interest rate r and time t. a) P = 10,000 pesos; r = 5%; t = 3 b) P = 100,000 pesos; r = 20%; t = 7 months c) P = 25,000 pesos; r = 12.5%; t = 165 days (ordinary interest)
You are told that a note has repayment terms of $1,700 per quarter for 6 years, with a stated interest rate of 8%. How much of the total payment is for principal, and how much is for interest? Calculate using (a) financial calculator or (b) Excel function PV. (Round answers to 2 decimal places, eg. 5,275.25.) Total payment for principal Total interest Determine if the total interest will be higher or lower than with an annual payment. The total interest will be than with an annual payment.
Using Table 11-1, compute the amount of compound interest (in $) earned in 1 year and the annual percentage yield (APY) for the investment. (Round your answers to two decimal places.) Compound Interest Earned in 1 Year Annual Percentage Yield (APY) Nominal Interest Principal Rate (%) Compounded $33,000 12 monthly $ % Need Help? Read It 3 Type here to search
= A bank features a savings account that has an annual percentage rate of r interest compounded quarterly. Tatiana deposits $9,000 into the account. The account balance can be modeled by the exponential formula A(t) = a (1 + 7-)kt, where A is account value after t years, a is the principal (starting amount), r is the annual percentage rate, k is the number of times each year that the interest is compounded. (A) What values should be used for a, r, and k? a = r = 5.6% with k = (B) How much money will Tatiana have in the account in 7 years? Answer = $ 7. Round answer to the nearest penny. APY = = %. Round answer to 3 decimal places. (C) What is the annual percentage yield (APY) for the savings account? (The APY is the actual or effective annual percentage rate which includes all compounding in the year).
1) Let y be the balance in an account if you deposit $5000 for x years at 4% APR compounded monthly. USE ALL DECIMALS except in e and fand h! a) Write the formula for y = f(x) b) Then rewrite the formula as an annual compounding (APY) formula as shown in the Lecture 16 notes. y = (rewritten). c) The APY (clear from part b) is: d) Then use the 2âd version of y to write y ' - e) How much is the investment worth after 7 years? f) How fast is the investment growing after 7 years? g) What is the percentage rate of growth (PROC) after 7 years as a percent? USE ALL DECIMALS! h) Write a sentence translating into English your answer for f' (7) : i) Show the second way to find the derivative of your formula in a) using the chain rule (as found in the chain rule lecture): j) Find y'(7) from your answer in j and confirm it is the same (at least to 7 decimals) as using the formula in d.
What would be the annual percentage yield for a savings account that earned $51 in interest on $750 over the past 365 days? (Enter your answer as a percent rounded to 1 decimal place.)
Subject - account Please help me. Thankyou.

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