Explanation Formula: Compound Interest Formula: The formula for the amount at the end of n years for a starting Principal P at the rate of interest of r is defined as, A = P ( 1 + r ) n Calculation: Consider a signing bonus of $ 10 , 000 invested in an account for the next 30 years which yields an interest rate of 8 % . The amount in the account at the end of 30 years at this interest rate has to be calculated. Use the Compound Interest formula to calculate amount. Substitute P = 10 , 000 , n = 30 , r = 0.08 in the compound interest formula. A = 10 , 000 ( 1 + 0 To determine b. To find: The amount that will be in the account at the end of 30 years if an amount of $ 10 , 000 is invested at the rate of 1.5 % .

6th Edition

ISBN: 9780134434681

Author: Tom Pirnot

Publisher: PEARSON

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Chapter 7.4, Problem 64E

To determine

a.

To find:

The amount that will be in the account at the end of 30 years if an amount of $10,000 is invested at the rate of 8%.

To determine

b.

To find:

The amount that will be in the account at the end of 30 years if an amount of $10,000 is invested at the rate of 1.5%.

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Chapter 7.4, Problem 63E

Chapter 7.4, Problem 65E

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Chapter 7 Solutions

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a. To find: The amount that will be in the account at the end of 30 years if an amount of $ 10 , 000 is invested at the rate of 8 % .

Solution Summary: The author calculates the amount in the account at the end of 30 years if 10,000 is invested at an interest rate of 8%.

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a.

To find:

The amount that will be in the account at the end of 30 years if an amount of $10,000 is invested at the rate of 8%.

b.

To find:

The amount that will be in the account at the end of 30 years if an amount of $10,000 is invested at the rate of 1.5%.

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Chapter 7 Solutions

a. To find: The amount that will be in the account at the end of 30 years if an amount of $ 10 , 000 is invested at the rate of 8 % .

Solution Summary: The author calculates the amount in the account at the end of 30 years if 10,000 is invested at an interest rate of 8%.

Concept explainers

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a. To find: The amount that will be in the account at the end of 30 years if an amount of $10,000 is invested at the rate of 8%.

b. To find: The amount that will be in the account at the end of 30 years if an amount of $10,000 is invested at the rate of 1.5%.

Want to see the full answer?

Chapter 7 Solutions

a.

To find:

The amount that will be in the account at the end of 30 years if an amount of $10,000 is invested at the rate of 8%.

b.

To find:

The amount that will be in the account at the end of 30 years if an amount of $10,000 is invested at the rate of 1.5%.