Explanation Given: The value of the loan ‘ P ’ is $10,000. The interest rate ‘ r ’ is 5% (i.e.) 0.05. The time ‘ t ’ is 10 years. Formula used: The compound interest formula is given by, A = P ( 1 + i ) n , where i = r m and n = m t Here, A is the future value, P is the principal, i is the interest rate per period, n is the number of compounding periods, m is the number of compounding periods per year, t is the number of years. The formula for continuous compounding is given by A = P e r t , where P is the deposit and r is the rate of interest for t years. Calculation: If the interest is compounded annually, then m = 1 . First calculate the interest rate per period, i = 0.05 1 = 0.05 Then the number of compounding periods, n = m t = ( 1 ) ( 10 ) = 10 Calculate the compound amount as follows, A = P ( 1 + i ) n = 10 , 000 ( 1 + 0.05 ) 10 = 10 , 000 ⋅ 1.62889 = 16 , 288.94 For the case m = 1 , the compound amount is not $17,000. If the interest is compounded semiannually, m = 2 . Calculate the interest rate per period, i = 0.05 2 = 0.025 Then the number of compounding periods, n = m t = ( 2 ) ( 10 ) = 20 Calculate the compound amount as follows, A = P ( 1 + i ) n = 10 , 000 ( 1 + 0.025 ) 20 = 10 , 000 ⋅ 1.63862 = 16 , 386.16 For the case m = 2 , the compound amount is not $17,000. If the interest is compounded quarterly, m = 4 . Then calculate the interest rate per period, i = 0.05 4 = 0

Finite Mathematics and Calculus with Applications (10th Edition)

10th Edition

ISBN: 9780321979407

Author: Margaret L. Lial, Raymond N. Greenwell, Nathan P. Ritchey

Publisher: PEARSON

See similar textbooks

Concept explainers

Unitary Method

The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.

Speed, Time, and Distance

Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 …

Profit and Loss

The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.

Units and Measurements

Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experime…

Videos

Question

Chapter 5.1, Problem 56E

To determine

To explain: Whether it is possible to compound often enough so that the compound amount is $17,000 after 10 year.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 5.1, Problem 55E

Chapter 5.1, Problem 57E

Students have asked these similar questions

After a great deal of experimentation, two college senior physics majors determined that when a bottle of French champagne is shaken several times, held upright, and uncorked, its cork travels according to the function below, where s is its height (in feet) above the ground t seconds after being released. s(t)=-16t² + 30t+3 a. How high will it go? b. How long is it in the air?

+6x²+135x+1) (0≤x≤10). a) Find the number of units The total profit P(x) (in thousands of dollars) from a sale of x thousand units of a new product is given by P(x) = In (-x²+6x² + 135x+ that should be sold in order to maximize the total profit. b) What is the maximum profit?

The fox population in a certain region has an annual growth rate of 8 percent per year. It is estimated that the population in the year 2000 was 22600. (a) Find a function that models the population t years after 2000 (t = 0 for 2000). Your answer is P(t) = (b) Use the function from part (a) to estimate the fox population in the year 2008. Your answer is (the answer should be an integer)

Chapter 5 Solutions

Finite Mathematics and Calculus with Applications (10th Edition)

Ch. 5.1 - Find the maturity value for a 3000 loan at 5.8%...Ch. 5.1 - Prob. 2YT Ch. 5.1 - Prob. 3YT Ch. 5.1 - Prob. 4YT Ch. 5.1 - Prob. 5YT Ch. 5.1 - Prob. 6YT Ch. 5.1 - Prob. 7YT Ch. 5.1 - Prob. 8YT Ch. 5.1 - Prob. 1WE Ch. 5.1 - Prob. 2WE

Ch. 5.1 - Prob. 3WE Ch. 5.1 - Prob. 4WE Ch. 5.1 - Prob. 1E Ch. 5.1 - Prob. 2E Ch. 5.1 - Prob. 3E Ch. 5.1 - Prob. 4E Ch. 5.1 - Prob. 5E Ch. 5.1 - Prob. 6E Ch. 5.1 - Prob. 7E Ch. 5.1 - Prob. 8E Ch. 5.1 - Prob. 9E Ch. 5.1 - Prob. 10E Ch. 5.1 - Prob. 11E Ch. 5.1 - Prob. 12E Ch. 5.1 - Prob. 13E Ch. 5.1 - Prob. 14E Ch. 5.1 - Prob. 15E Ch. 5.1 - Prob. 16E Ch. 5.1 - What is the difference between t and n?Ch. 5.1 - Prob. 18E Ch. 5.1 - Prob. 19E Ch. 5.1 - Prob. 20E Ch. 5.1 - Prob. 21E Ch. 5.1 - Prob. 22E Ch. 5.1 - Prob. 23E Ch. 5.1 - Prob. 24E Ch. 5.1 - Prob. 25E Ch. 5.1 - Prob. 26E Ch. 5.1 - Prob. 27E Ch. 5.1 - Prob. 28E Ch. 5.1 - Prob. 29E Ch. 5.1 - Prob. 30E Ch. 5.1 - Prob. 31E Ch. 5.1 - Prob. 32E Ch. 5.1 - Prob. 33E Ch. 5.1 - Prob. 34E Ch. 5.1 - Find the present value (the amount that should be...Ch. 5.1 - Prob. 36E Ch. 5.1 - Prob. 37E Ch. 5.1 - Prob. 38E Ch. 5.1 - Prob. 39E Ch. 5.1 - Prob. 40E Ch. 5.1 - Prob. 41E Ch. 5.1 - Prob. 42E Ch. 5.1 - Prob. 43E Ch. 5.1 - Prob. 44E Ch. 5.1 - Prob. 45E Ch. 5.1 - Prob. 46E Ch. 5.1 - For each of the following amounts at the given...Ch. 5.1 - Prob. 48E Ch. 5.1 - Prob. 49E Ch. 5.1 - Prob. 50E Ch. 5.1 - Prob. 51E Ch. 5.1 - Prob. 52E Ch. 5.1 - Prob. 53E Ch. 5.1 - Prob. 54E Ch. 5.1 - Prob. 55E Ch. 5.1 - Prob. 56E Ch. 5.1 - Prob. 57E Ch. 5.1 - Prob. 58E Ch. 5.1 - Prob. 59E Ch. 5.1 - Prob. 60E Ch. 5.1 - Prob. 61E Ch. 5.1 - Prob. 62E Ch. 5.1 - Prob. 63E Ch. 5.1 - Prob. 64E Ch. 5.1 - Savings On January 1, 2010, Jack deposited 1000...Ch. 5.1 - Savings Eric deposits 100 into a savings account...Ch. 5.1 - Interest Bruce and Robbie each open new bank...Ch. 5.1 - Prob. 68E Ch. 5.1 - Effective Rate In 2014, the Home Savings Bank paid...Ch. 5.1 - Prob. 70E Ch. 5.1 - Prob. 71E Ch. 5.1 - Prob. 72E Ch. 5.1 - Prob. 73E Ch. 5.1 - Prob. 74E Ch. 5.1 - Prob. 75E Ch. 5.1 - Prob. 76E Ch. 5.1 - Prob. 77E Ch. 5.1 - Prob. 78E Ch. 5.1 - Prob. 79E Ch. 5.1 - Prob. 80E Ch. 5.2 - Prob. 1YT Ch. 5.2 - Prob. 2YT Ch. 5.2 - Prob. 3YT Ch. 5.2 - Prob. 4YT Ch. 5.2 - Prob. 1WE Ch. 5.2 - Prob. 2WE Ch. 5.2 - Prob. 1E Ch. 5.2 - Prob. 2E Ch. 5.2 - Prob. 3E Ch. 5.2 - Prob. 4E Ch. 5.2 - Prob. 5E Ch. 5.2 - Prob. 6E Ch. 5.2 - Prob. 7E Ch. 5.2 - Prob. 8E Ch. 5.2 - Prob. 9E Ch. 5.2 - Prob. 10E Ch. 5.2 - Prob. 11E Ch. 5.2 - Prob. 12E Ch. 5.2 - Prob. 13E Ch. 5.2 - Prob. 14E Ch. 5.2 - Explain how a geometric sequence is related to an...Ch. 5.2 - Prob. 16E Ch. 5.2 - Prob. 17E Ch. 5.2 - Prob. 18E Ch. 5.2 - Prob. 19E Ch. 5.2 - Prob. 20E Ch. 5.2 - Find the future value of each ordinary annuity, if...Ch. 5.2 - Prob. 22E Ch. 5.2 - Prob. 23E Ch. 5.2 - Prob. 24E Ch. 5.2 - Prob. 25E Ch. 5.2 - Prob. 26E Ch. 5.2 - Prob. 27E Ch. 5.2 - Prob. 28E Ch. 5.2 - Prob. 31E Ch. 5.2 - Prob. 32E Ch. 5.2 - Prob. 33E Ch. 5.2 - Prob. 34E Ch. 5.2 - Prob. 35E Ch. 5.2 - Prob. 36E Ch. 5.2 - Prob. 37E Ch. 5.2 - Prob. 38E Ch. 5.2 - Prob. 39E Ch. 5.2 - Prob. 40E Ch. 5.2 - Prob. 41E Ch. 5.2 - Prob. 42E Ch. 5.2 - Prob. 43E Ch. 5.2 - Prob. 44E Ch. 5.2 - Prob. 45E Ch. 5.2 - Prob. 46E Ch. 5.2 - Business and Economics 47. Comparing Accounts...Ch. 5.2 - Prob. 48E Ch. 5.2 - Prob. 49E Ch. 5.2 - Prob. 50E Ch. 5.2 - Retirement Planning At the end of each quarter, a...Ch. 5.2 - Prob. 52E Ch. 5.2 - Prob. 53E Ch. 5.2 - Prob. 54E Ch. 5.2 - Prob. 55E Ch. 5.2 - Prob. 56E Ch. 5.2 - Prob. 57E Ch. 5.2 - Prob. 58E Ch. 5.2 - Prob. 59E Ch. 5.2 - Prob. 60E Ch. 5.2 - Prob. 61E Ch. 5.2 - Savings Nic Daubenmire deposits 10,000 at the...Ch. 5.2 - In Exercises 63 and 64, use a graphing calculator...Ch. 5.2 - Prob. 64E Ch. 5.2 - Lottery In a 1992 Virginia lottery, the jackpot...Ch. 5.2 - Buying Real Estate Erin DAquanni sells some land...Ch. 5.2 - Prob. 67E Ch. 5.2 - Prob. 68E Ch. 5.3 - Prob. 1YT Ch. 5.3 - Prob. 2YT Ch. 5.3 - Prob. 3YT Ch. 5.3 - Prob. 4YT Ch. 5.3 - Prob. 1WE Ch. 5.3 - Prob. 2WE Ch. 5.3 - Prob. 1E Ch. 5.3 - Prob. 2E Ch. 5.3 - Prob. 3E Ch. 5.3 - Prob. 4E Ch. 5.3 - Prob. 5E Ch. 5.3 - Prob. 6E Ch. 5.3 - Prob. 7E Ch. 5.3 - Prob. 8E Ch. 5.3 - Prob. 9E Ch. 5.3 - Prob. 10E Ch. 5.3 - Prob. 11E Ch. 5.3 - Prob. 12E Ch. 5.3 - Find (a) the payment necessary to amortize each...Ch. 5.3 - Prob. 14E Ch. 5.3 - Prob. 15E Ch. 5.3 - Prob. 16E Ch. 5.3 - Prob. 17E Ch. 5.3 - Prob. 18E Ch. 5.3 - Prob. 19E Ch. 5.3 - Prob. 20E Ch. 5.3 - Prob. 21E Ch. 5.3 - Prob. 22E Ch. 5.3 - Prob. 23E Ch. 5.3 - Prob. 24E Ch. 5.3 - Prob. 25E Ch. 5.3 - Prob. 26E Ch. 5.3 - Prob. 27E Ch. 5.3 - Prob. 28E Ch. 5.3 - Prob. 29E Ch. 5.3 - Prob. 30E Ch. 5.3 - Suppose that in the loans described in Exercises...Ch. 5.3 - Prob. 32E Ch. 5.3 - Prob. 33E Ch. 5.3 - Suppose that in the loans described in Exercises...Ch. 5.3 - Prob. 35E Ch. 5.3 - Prob. 36E Ch. 5.3 - Prob. 37E Ch. 5.3 - Prob. 38E Ch. 5.3 - Prob. 39E Ch. 5.3 - New Car Financing In 2014, some dealers offered...Ch. 5.3 - Prob. 41E Ch. 5.3 - Prob. 42E Ch. 5.3 - Prob. 43E Ch. 5.3 - Prob. 44E Ch. 5.3 - Prob. 45E Ch. 5.3 - Prob. 46E Ch. 5.3 - Prob. 47E Ch. 5.3 - Prob. 48E Ch. 5.3 - House Payments Jason Hoffa buys a house for...Ch. 5.3 - Prob. 50E Ch. 5.3 - Refinancing a Mortgage Fifteen years ago. the...Ch. 5.3 - Prob. 52E Ch. 5.3 - Prob. 53E Ch. 5.3 - A loan of 37,948 with interest at 6.5% compounded...Ch. 5.3 - Prob. 55E Ch. 5.3 - Prob. 56E Ch. 5.3 - Prob. 57E Ch. 5 - Determine whether each of the following statements...Ch. 5 - Prob. 2RE Ch. 5 - Prob. 3RE Ch. 5 - Prob. 4RE Ch. 5 - Prob. 5RE Ch. 5 - Prob. 6RE Ch. 5 - Determine whether each of the following statements...Ch. 5 - Prob. 8RE Ch. 5 - Prob. 9RE Ch. 5 - Prob. 10RE Ch. 5 - Prob. 11RE Ch. 5 - Prob. 12RE Ch. 5 - Prob. 13RE Ch. 5 - Prob. 14RE Ch. 5 - Prob. 15RE Ch. 5 - Prob. 16RE Ch. 5 - Prob. 17RE Ch. 5 - Prob. 18RE Ch. 5 - Prob. 19RE Ch. 5 - Prob. 20RE Ch. 5 - Prob. 21RE Ch. 5 - Prob. 22RE Ch. 5 - Prob. 23RE Ch. 5 - Prob. 24RE Ch. 5 - Prob. 25RE Ch. 5 - Prob. 26RE Ch. 5 - Prob. 27RE Ch. 5 - Prob. 28RE Ch. 5 - Prob. 29RE Ch. 5 - Prob. 30RE Ch. 5 - Prob. 31RE Ch. 5 - Prob. 32RE Ch. 5 - Prob. 33RE Ch. 5 - Prob. 34RE Ch. 5 - Prob. 35RE Ch. 5 - Prob. 36RE Ch. 5 - Prob. 37RE Ch. 5 - Prob. 38RE Ch. 5 - Prob. 39RE Ch. 5 - Prob. 40RE Ch. 5 - Prob. 41RE Ch. 5 - Prob. 42RE Ch. 5 - Prob. 43RE Ch. 5 - Prob. 44RE Ch. 5 - Prob. 45RE Ch. 5 - Prob. 46RE Ch. 5 - Prob. 47RE Ch. 5 - Prob. 48RE Ch. 5 - Prob. 49RE Ch. 5 - Prob. 50RE Ch. 5 - Prob. 51RE Ch. 5 - Prob. 52RE Ch. 5 - Prob. 53RE Ch. 5 - Prob. 54RE Ch. 5 - Prob. 55RE Ch. 5 - Prob. 56RE Ch. 5 - Prob. 57RE Ch. 5 - Prob. 58RE Ch. 5 - Prob. 59RE Ch. 5 - Prob. 60RE Ch. 5 - Prob. 61RE Ch. 5 - Prob. 62RE Ch. 5 - Prob. 63RE Ch. 5 - Prob. 64RE Ch. 5 - Prob. 65RE Ch. 5 - Prob. 66RE Ch. 5 - Business Investment A developer deposits 84,720...Ch. 5 - Prob. 68RE Ch. 5 - Prob. 69RE Ch. 5 - Prob. 70RE Ch. 5 - Prob. 71RE Ch. 5 - Prob. 72RE Ch. 5 - Prob. 73RE Ch. 5 - Prob. 74RE Ch. 5 - Prob. 75RE Ch. 5 - Prob. 76RE Ch. 5 - Prob. 77RE Ch. 5 - New Car In Spring 2014, some dealers offered a...Ch. 5 - Prob. 79RE Ch. 5 - Prob. 80RE Ch. 5 - Prob. 81RE

Knowledge Booster

$Calculus$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, calculus and related others by exploring similar questions and additional content below.

Whether it is possible to compound often enough so that the compound amount is $17,000 after 10 year.

Solution Summary: The author explains how to compound often enough so that the compound amount is 17,000 after 10 years. The formula for continuous compounding is given by A=Pert.

Concept explainers

Videos

To explain: Whether it is possible to compound often enough so that the compound amount is $17,000 after 10 year.

Want to see the full answer?

Chapter 5 Solutions