Investment Problems An investment of P dollars is deposited in a savings account that is compounded monthly with an annual interest rate of r , where r is expressed as a decimal. The amount of money A in the account after t years is given by A = P ( 1 + r / 12 ) 12 t . Use this equation to complete the following exercises. 64. Determine the time it takes an investment of $20,000 to increase to $22,000 if it is placed in an account that is compounded monthly with an annual interest rate of 2.5%.
Investment Problems An investment of P dollars is deposited in a savings account that is compounded monthly with an annual interest rate of r , where r is expressed as a decimal. The amount of money A in the account after t years is given by A = P ( 1 + r / 12 ) 12 t . Use this equation to complete the following exercises. 64. Determine the time it takes an investment of $20,000 to increase to $22,000 if it is placed in an account that is compounded monthly with an annual interest rate of 2.5%.
Solution Summary: The author calculates the time taken to increase the investment of 20,000 to 22,000.
Investment Problems An investment of P dollars is deposited in a savings account that is compounded monthly with an annual interest rate of r, where r is expressed as a decimal. The amount of money A in the account after t years is given by
A
=
P
(
1
+
r
/
12
)
12
t
. Use this equation to complete the following exercises.
64. Determine the time it takes an investment of $20,000 to increase to $22,000 if it is placed in an account that is compounded monthly with an annual interest rate of 2.5%.
London owes $7, 000 on her credit card.
The bank charges an annual interest rate
of 16.8%, compounded monthly. If London
wants to pay off her credit card using
equal monthly payments over the next 18
months, what would the monthly payment
be, to the nearest dollar?
Pr
M
1- (1+r)-"
M = the monthly payment
P = the amount owed
r = the interest rate per month
n = the number of payments
The price in dollars of a house during a period of mild inflation is described by the formula
P(t) = 80,000e-05t, where t is the number of years after 1990.
a. How many dollars per year will the value of the house be increasing in year 2017?
b. How many dollars per year will the value of the house be increasing in year 2005?
You deposit 120 dollars into an account that pays an interest rate of 6% per year.
a.) Find an equation for the amount you have after t years. A(t)=
b.) Use the equation in part (a) to find the doubling time for the amount in your account. Round to two decimal places.
How many years
Chapter 1 Solutions
Single Variable Calculus Format: Unbound (saleable)
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