. A sum of $145,000 is invested now and left for 8 years, at which time the principal is withdrawn. The interest that has accrued is left for another 8 years. If the interest rate is 5%, what will be the withdrawal amount at the end of the 16th year? 3. How long will it take for an investment to increase by 145% its amount if money is worth 14% comp. semi-annually?
. A sum of $145,000 is invested now and left for 8 years, at which time the principal is withdrawn. The interest that has accrued is left for another 8 years. If the interest rate is 5%, what will be the withdrawal amount at the end of the 16th year? 3. How long will it take for an investment to increase by 145% its amount if money is worth 14% comp. semi-annually?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 31P
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Question
1. What interest comp. monthly is equivalent to an interest rate of 14.5% comp. quarterly?
2. A sum of $145,000 is invested now and left for 8 years, at which time the principal is withdrawn. The interest that has accrued is left for another 8 years. If the interest rate is 5%, what will be the withdrawal amount at the end of the 16th year?
3. How long will it take for an investment to increase by 145% its amount if money is worth 14% comp. semi-annually?
4. A man makes a payment of $1450 at the beginning of every month on a bank that offers 6% interest. How much did the man borrow if the payment would last for 10 years?
5. A young woman made a loan from a certain bank and started paying $1450 quarterly after 2 years from the loan date. If payment is to be made for 5 years and interest is 10%, how much was loaned by the woman?
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