daly inasevings account at an aul teof S12,000 he count peys 10% iterst compounded continuouly, etimate the belance in the sccount at the end of 6 years.CRIDThe pproimate hncein the ntisRond the t dollar a needed)

Given principal amount is $12,000Rate if interest is 10%Time is 5 yearsWe know that compounded…

Answered: Appomy d dly einge ttanu eof 12.000 ent…

College Algebra

10th Edition

ISBN:9781337282291

Author:Ron Larson

Publisher:Ron Larson

Chapter8: Sequences, Series,and Probability

Section8.3: Geometric Sequences And Series

Problem 86E

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Equity in a Home When you purchase a home by securing a mortgage, the total paid toward the principal is your equity in the home. Technically, the lending agency calculates your equity by subtracting the amount you still owe on your mortgage from the current value of your home, which may be higher or lower than your principal. Assume that your mortgage is for 350, 000 at a monthly rate of 0.007 as a decimal and that the term of the mortgage is 30 years. Then your equity after k monthly payments is 350, 0001.007k-11.007360-1 dollars. Calculate the equity in your home after 10 years.
An Amortization Table Suppose you borrow P dollars at a monthly interest rate of r as a decimal and wish to pay off the loan in t months. Then your monthly payment can be calculated using M=Pr(1+r)t(1+r)t1 dollars. Remember that for monthly compounding, you get the monthly rate by dividing the APR by 12. Suppose you borrow 3500 at a 9 APR meaning that you use r = 0.09/12 in the preceding formula and pay it back in 2 years. a. What is your monthly payment? b. Lets look ahead to the time when the loan is paid off. i. What is the total amount you paid to the bank? ii. How much of that was interest? c. The amount B that you still owe the bank after making k monthly payments can be calculated using the variables r, P, and t. The relationship is given by B=P((1+r)t(1+r)k(1+r)t1) dollars. i. How much do you still owe the bank after 1 year of payments? ii. An amortization table is a table that shows how much you still owe the bank after each payment. Make an amortization table for this loan.
Allan invested $10,000 in a mutual fund. If the interest rate is 5%, how much will be in the account in 15 years by each method of compounding? compound quarterly compound monthly compound continuously
Depreciation Once a new car is driven away from the dealer, it begins to lose value. Each year, a car loses 10% of its value. This means that each year the value of a car is 90% of the previous year’s value. If a new car was purchased for $20,000, the value at the end of the first year would be $20000(0.90) and the value of the car after the end of the second year would be $20000(0.90)2. Complete the table shown below. What will be the value of the car at the end of the eighth year? Simplify the expression, to show the value in dollars.
The annual percentage yield (APY) of an investmentaccount is a representation ofthe actual interest rateearned on a compounding account. It is based on acompounding period of one year. Show that the APYof an account that compounds monthly can be foundwith the formula APY=(1+r12)121.

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Appomy d dly einge ttanu eof 12.000 ent pey 10 t compounded condruy te te elncein heunt at the end of S yean. he pri eheunt e neded)