(b) If $2000 is invested today at 8% compounded quarterly, how much would it be worth in 2030? 2022 (c) How much should you deposit presently at 6% compounded quarterly in order to receive payments of $800 quarter for the next 5 years?

Intermediate Algebra
10th Edition
ISBN:9781285195728
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter11: Exponential And Logarithmic Functions
Section11.2: Applications Of Exponential Functions
Problem 27PS
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part a given. 

(a) Find the APY for money invested at 7.2% compounded continuously?
(b) If $2000 is invested today at 8% compounded quarterly, how much would it be worth in 2030?
2022
(c) How much should you deposit presently at 6% compounded quarterly in order to receive payments
of $800 quarter for the next 5 years?
Transcribed Image Text:(a) Find the APY for money invested at 7.2% compounded continuously? (b) If $2000 is invested today at 8% compounded quarterly, how much would it be worth in 2030? 2022 (c) How much should you deposit presently at 6% compounded quarterly in order to receive payments of $800 quarter for the next 5 years?
a. Calculation of APY:
Here,
Interest Rate is 7.2%
Compounding Period is Continuous
Calculation of APY is as follows:
APY=eInterest Rate-1=e.072-1=1.0746553440-1=0.0746553440=7.47%
Answer: APY is 7.47%
Transcribed Image Text:a. Calculation of APY: Here, Interest Rate is 7.2% Compounding Period is Continuous Calculation of APY is as follows: APY=eInterest Rate-1=e.072-1=1.0746553440-1=0.0746553440=7.47% Answer: APY is 7.47%
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