For Exercises 11–16, suppose that P dollars in principal is invested at an annual interest rate r . For interest compounded n times per year, the amount A ( t ) in the account after t years is given by A ( t ) = P ( 1 + r n ) n t . If interest is compounded continuously, the amount is given by A ( t ) = P e r t . Suppose an investor deposits $15,000 in an account for 8 yr at 5.0% interest. Find the total amount of money in the account for the following compounding options. Compare your answers. How does the number of compound periods per year affect the total investment? a. Compounded annually b. Compounded quarterly c. Compounded monthly d. Compounded daily e. Compounded continuously
For Exercises 11–16, suppose that P dollars in principal is invested at an annual interest rate r . For interest compounded n times per year, the amount A ( t ) in the account after t years is given by A ( t ) = P ( 1 + r n ) n t . If interest is compounded continuously, the amount is given by A ( t ) = P e r t . Suppose an investor deposits $15,000 in an account for 8 yr at 5.0% interest. Find the total amount of money in the account for the following compounding options. Compare your answers. How does the number of compound periods per year affect the total investment? a. Compounded annually b. Compounded quarterly c. Compounded monthly d. Compounded daily e. Compounded continuously
Solution Summary: The author calculates the total amount of money in the account after 8 years if compounded annually for 15000 invested at 5%.
For Exercises 11–16, suppose that P dollars in principal is invested at an annual interest rate r. For interest compounded n times per year, the amount
A
(
t
)
in the account after t years is given by
A
(
t
)
=
P
(
1
+
r
n
)
n
t
. If interest is compounded continuously, the amount is given by
A
(
t
)
=
P
e
r
t
.
Suppose an investor deposits $15,000 in an account for 8 yr at 5.0% interest. Find the total amount of money in the account for the following compounding options. Compare your answers. How does the number of compound periods per year affect the total investment?
Problem #5
Suppose you flip a two sided fair coin ("heads" or "tails") 8 total times.
a). How many ways result in 6 tails and 2 heads?
b). How many ways result in 2 tails and 6 heads?
c). Compare your answers to part (a) and (b) and explain in a few sentences why the
comparison makes sense.
A local company has a 6 person management team and 20 employees. The company needs to select 3 people from the management team and 7 employees to attend a regional meeting. How many different possibilities are there for the group that can be sent to the regional meeting?
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