May '20Monday 1107514OfWk: 20O We e clte going to put $2500 intothetan acco unta Tate Of 12%-1f weearnste restaitto have $ Aoo in the arcotntwantclose it, how long shouldl we Keep the moneyin the acrount if ?when we) hie compound interest contineously.) kle compounal interest 6 tinies ayear

Using compund interest formula and continuos compound interest formula.let us solve the problem.

Answered: Wk 20 O kle @ clte aoing to put $2500…

College Algebra

10th Edition

ISBN:9781337282291

Author:Ron Larson

Publisher:Ron Larson

Chapter8: Sequences, Series,and Probability

Section8.3: Geometric Sequences And Series

Problem 8ECP: An investor deposits $70 on the first day of each month in an account that pays 2 interest,...

See similar textbooks

Similar questions

Hw.103.
Jj.146.
1. ) Lucy invested 7000 Euros at 6% p.a. interest compounded annually. Find the value of this investment after 5 years. 2.) What will an investment of 3000 Euros at 4.8% p.a. interest compounded annually amount to after ears? 3.) 2000 Euros is invested for 4 years at 2.8% p.a. interest compounded annually. a. What will it amount to at the end of this period? b. How much interest has been earned? 4.) How much compound interest is earned dby investing 20 000 Euros at 4.2% p.a. over a 4 year period? 5.) How much compound interest is earned by investing $8,000 at 2.9% over a 3 year period? 6.) $20 000 is invested at 4.8% p.a. interest compounded quarterly. Find the value of this investment after: a. 1 year b. 3 years 7.) a. What will an investment of 30 000 Euros at 5.6% p.a. interest compounded annually amount to after 4 years? b. How much of this is interest? 8.) How much interest is earned by investing $80 000 at 4.4% p.a. for a 3 year period with interest compounded quarterly?
2.34. Fred Abbott has just opened an IRA in which he plans to deposit $150 at the end of every month. The account will compound interest monthly at the annual rate of 9%. How much money will Fred have after 25 years in this account?
13. How long will an amount of P50,000 gain a simple interest of P10,000 at 4% per annum?
OJohn Compary Wauts to luvcest ?ts net profite of $ 93,000 for 3 yours. Pu einher a Chedit uniou local or d laant. The Credit cmiere prouideS Anterest ef 4.50% Compounded monthlyt provides luteret of 5.00% cohite tre local buk Compouuched Semie aunually- a. Wheet coould be He maturity yalue of the luctestmeut uuder Hhe Credit unioe coptiou? b. lhat uoOuld be He maturity clalue of the Incestalent cuder the loccel bank Option? Rond to thre nearest cent C.cohich of the tuoo opticus woill cield Me bighreet return?'
1.) Jai recently inherited $92 000. He decides to invest it for 10 years before he spends any of it. The three banks in his town offer the following terms: Bank A: 5 1/2% p.a. compounded yearly. Bank B: 5 1/4% p.a. compounded quarterly. Bank C: 5% p.a. compounded monthly. Which bank offers Jai the greatest interest in his inheritance? 2.) What initial investment is required to produce a maturing amount of $15 000 in 60 months ' time given a guaranteed fixed interest rate of 5.5% p.a. compounded annually? Round your answer up to the next dollar. 3.) What inital investment will yield 4 000 000 in 8 years' time if your money can be invested at 3.6% p.a. compounded annually? (deals with sequences and series)
5. Many organizations use endowments to provide operating expenses or benefits. An endowment is established with a usually large principal is established in an account, at which point only interest is withdrawn for expenses with depleting the principal. Suppose a scholarship endowment is established with a generous gift of $50000a) Create a table in Excel with months as the first column and amount in account as the second column for this account. Carry out for 12 months. Assume the interest is compounded monthly at an annual rate of 5.5% b) Does the account generate enough interest to provide a $2500 scholarship every year. Explain c) Create a table in Excel with months as the first column and amount in account as the second column for this account. Carry out for 12 months. Assume the interest is compounded monthly at an annual rate of 4.8% d) Does the account generate enough interest to provide a $2500 scholarship every year? Explain e) Estimate (using trial and error) the minimum…

Recommended textbooks for you

College Algebra

Algebra

ISBN:

9781337282291

Author:

Ron Larson

Publisher:

Cengage Learning

Intermediate Algebra

Algebra

ISBN:

9781285195728

Author:

Jerome E. Kaufmann, Karen L. Schwitters

Publisher:

Cengage Learning

College Algebra

Algebra

ISBN:

9781305115545

Author:

James Stewart, Lothar Redlin, Saleem Watson

Publisher:

Cengage Learning

College Algebra

Algebra

ISBN:

9781337282291

Author:

Ron Larson

Publisher:

Cengage Learning

Intermediate Algebra

Algebra

ISBN:

9781285195728

Author:

Jerome E. Kaufmann, Karen L. Schwitters

Publisher:

Cengage Learning

College Algebra

Algebra

ISBN:

9781305115545

Author:

James Stewart, Lothar Redlin, Saleem Watson

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

Wk 20 O kle @ clte aoing to put $2500 into that eains t rest On account a Tate Of 12%-1¢ w? to have $ Ano in Hhe accotint when we close it, how long shouldl we Keep Hhe mony at want money in the clcrount if: i) kie comporind interest contineously. year ) kle compound interest 6 times a