a) A man has invested $5350 in a savings account that pays 12% simple interest. How long will it be, in years, until the investment amount to Tk.10165? b) How much will a deposit of 5000 taka grow to in 20 years at 6% interest compounded continuously? c) A sum of money invested now at 10 percent compounded quarterly is to provide payments of $ 1000 every 3 months for 12 years, the first payment due 3 months from now. How much should be invested? How much interest will the investment earn?
a) A man has invested $5350 in a savings account that pays 12% simple interest. How long will it be, in years, until the investment amount to Tk.10165? b) How much will a deposit of 5000 taka grow to in 20 years at 6% interest compounded continuously? c) A sum of money invested now at 10 percent compounded quarterly is to provide payments of $ 1000 every 3 months for 12 years, the first payment due 3 months from now. How much should be invested? How much interest will the investment earn?
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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a) A man has invested $5350 in a savings account that pays 12% simple interest. How long will
it be, in years, until the investment amount to Tk.10165?
b) How much will a deposit of 5000 taka grow to in 20 years at 6% interest compounded
continuously?
c) A sum of money invested now at 10 percent compounded quarterly is to provide payments of
$ 1000 every 3 months for 12 years, the first payment due 3 months from now. How much
should be invested? How much interest will the investment earn?
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