13. On your 20th birthday you buy a $100,000 winning lottery ticket! You're debating two scenarios: Option 1: You are super-responsible and wish to deposit the entire amount in an account with a continuous interest rate of 5%. Option 2: You are semi-super-responsible, spend $25,000 on a splurge vacation, depositing the remainder in an account earning 7% interest, compounded quarterly. a. Write a function to model Option 1. b. Write a function to model Option 2. c. You don't need to use the deposited money and accrued interest for 15 years. Which option should you choose to have the most money at that time? d. After how many years are the two investments equal?

13. On your 20th birthday you buy a $100,000 winning lottery ticket! You're debating two scenarios: Option 1: You are super-responsible and wish to deposit the entire amount in an account with a continuous interest rate of 5%. Option 2: You are semi-super-responsible, spend $25,000 on a splurge vacation, depositing the remainder in an account earning 7% interest, compounded quarterly. a. Write a function to model Option 1. b. Write a function to model Option 2. c. You don't need to use the deposited money and accrued interest for 15 years. Which option should you choose to have the most money at that time? d. After how many years are the two investments equal?

Name: Can you answer A through D for me. 13. On your 20th birthday you buy a
Uploaded: 2024-03-20T07:06:27.000Z
Channel: Bartleby
Description: Can you answer A through D for me. 13. On your 20th birthday you buy a $100,000 winning lottery ticket! You're debating two scenarios:Option 1: You are super-responsible and wish to deposit the entire amount in an accountwith a continuous interest ra

College Algebra

7th Edition

ISBN:9781305115545

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter5: Systems Of Equations And Inequalities

Section: Chapter Questions

Problem 14P: Annual interest yield refer to problem 13 .suppose the investor decides to increase the maximum...

See similar textbooks

Similar questions

Annual interest yield refer to problem 13 .suppose the investor decides to increase the maximum invested in highest bonds to $3000 leave the other conditions unchanged .by how much will her maximum possible interest yield increase?
A small company is trying to decide whether or not to upgrade its website. The upgrade costs 5,000, but will bring in a continuous stream of $500 dollars of extra income per year. If the company would invest this extra income in an account with a continuously compounding interest rate of 3% for ten years, should the company upgrade the website?
A certain company grants a six-month investment product that offers to pay its clients 8% the first month, 12% the second month, 11% the third month, 8% the fourth month, 14% the fifth month and 15% the sixth month. What would be the value of the average rate that the customer will receive? Write your answer to 2 decimal places.
Q3.5.Ellis Autotrol, Inc. plans to install an ecofriendly energy recovery system that will cost an estimated $86,900 if it is installed 5 years from now. The company uses an interest rate of 10% per year compounded continuously. How much could it spend now?
A retirement account is opened with an initial deposit of $8,500 and earns 8.12% interest compounded monthly. What will the account be worth in 20years? What if the deposit was calculated using simple interest? Could you see the situation in a graph? From what point one is better than the other?
What is the future value of a constant income stream of $30,000 per year in 5 years from now given a continuous interest rate of 4.5% per annum? Give your answer to the nearest dollar and show working.
State the formula for the Present Value of a Continuous Stream of Income.
If changing market conditions cause a company earning $7,000,000 in 2015 to project a loss of 1% of its profit in each of the next 5 years, what profit does it project in 2020? (Round your answer to the nearest dollar.)
The following table shows the average life expectancies in several countries. Assume that all premiums you calculate are based on end-of-month deposits in a fund yielding 6.8% annual interest compounded monthly to be paid out when a person reaches the life expectancy. HINT [See Example 2.] Country Japan Canada U.K. U.S. Mexico China India LifeExpectancy:Male 80 80 79 76 73 74 64 LifeExpectancy:Female 87 84 83 81 79 77 68 Calculate the life insurance monthly premium that a 40-year-old female in Japan would pay for a $5,000,000 policy. (Round your answer to the nearest cent.)
If prices increase at a monthly rate of 3.4%, by what % do they increase in a year?