a) Determine the simple interest rate at which $10,000 will grow to $10,500 in 10 months.

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
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Chapter9: Sequences, Probability And Counting Theory
Section9.4: Series And Their Notations
Problem 56SE: To get the best loan rates available, the Riches want to save enough money to place 20% down on a...
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a)
Determine the simple interest rate at which $10,000 will grow to $10,500 in 10 months.
7.5 years ago, Barb invested $30,000 in a retirement fund that grew at a rate of 3.125% per year,
b)
compounded quarterly. What is the account worth today?
Simon purchased a 5-year, $5,500 promissory note with an interest rate of 4% per year, compounded
quarterly. How much did the promissory note cost?
Transcribed Image Text:a) Determine the simple interest rate at which $10,000 will grow to $10,500 in 10 months. 7.5 years ago, Barb invested $30,000 in a retirement fund that grew at a rate of 3.125% per year, b) compounded quarterly. What is the account worth today? Simon purchased a 5-year, $5,500 promissory note with an interest rate of 4% per year, compounded quarterly. How much did the promissory note cost?
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