Computing Compound Interest A credit union pays interest of 2% per annum compounded quarterly on a certain savings plan. If $1000 is deposited in such a plan and the interest is left to accumulate, how much is in the account after 1 year? EXAMPLE 1

Q: $1500 is deposited at the end of each quarterly in an account that earns 6% compounded quarterly…

A: The future value of the ordinary annuity is given by FV=P[(1+i)n-1]i Here, P=$1500 i=6% For quarter…

Q: grandparents

A: Given :  Future value = $40,000 Time t = 18 years  Interest r = 3.5%  Compounding m = 4

Q: Funding a College Education A child’s grandparents wish topurchase a bond that matures in 18 years…

A: To find: The principle amount. Given: The time is 18 years, rate of interest is 4% compounded…

Q: hen your first child is born, you begin to save for college by depositing $400 per month in an…

A: To find the total amount accumulated in the account by the time your child enters college 18 years…

Q: Ned deposits $15,000 in a certificate of deposit. The annual rate is 10% and will be compounded…

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Q: Credit Card Interest A department store charges 1.25%per month on the unpaid balance for customers…

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Q: - Compound Interest If $10,000 is invested at an interest rate of 3% per year, compounded…

A: P=$10,000,   r=3%=0.03,  n=2. a). A=P1+rnn·t=100001+0.0322·5=100001.01510=11,605.4082 Hence the…

Q: Part A: Find the final amount of money in an account if $8,200$8,200 is deposited at 7% interest…

A: According to the Bartleby guidelines only one question can be solved at one time, post the remaining…

Q: Finance. Suppose that $3,800 is invested at 3.4% annual interest rate, compounded monthly. How much…

A: Given,  Principal = p = $ 3800Rate of interest = r = 3.4 % annually , compounded monthly We have to…

Q: Compound Interest Find the future value of $20,000invested for 5 years at 6%, compounded annually.

A: Amount when a sum is compounded annually: A = P(1+r)t where P = principal amount             r =…

Q: Finance. Suppose that $5,600 is invested at 5.1% annual interest rate, compounded monthly. How much…

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Q: 65. Investment How much money should be invested every quarter at 12% per year, compounded…

A: Given: Here annuity amount is Af=$10,000 We have an interest is given quarterly so the interest…

Q: A. Use the appropriate formula to determine the periodic Deposit. B. How much of the financial goal…

A: Let's find.

Q: A certificate of deposit (CD) is a savings instrument that many banks offer. It usually gives…

A: The value of investment after t years , if amount P is deposited in a CD .

Q: Loans and Annuities Due a) i) Ali is paying off a loan by making $50 payments at the end of every…

A: Given :         Monthly payment A = $50         Rate of interest  r  =  6% per year/12 months…

Q: Example 4 A certificate of deposit (CD) is a savings instrument that many banks offer. It usually…

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Q: Computing the Effective Rate of Interest–Which Is the Best Deal? EXAMPLE 4 Suppose you want to buy a…

A: solution: A=P1+rnnt A= Total amount after t years r= Rate of interest  n=4 compounded quarterly t=5…

Q: you deposit  $15000 in a bank that its interest rate is 3%  annual interest compounded annually (…

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Q: 4. Winnie is saving money to buy a honey farm He invests $7000 at an interest rate of 3.2% per…

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Q: 9% interest compounded semiannually. How much will you have in the account in 20 years? How much…

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Q: Funding a College Education A child’s grandparentspurchase a $10,000 bond fund that matures in 18…

A: Given;          Principal (P) = $10,000          Time (t) = 18 years           Rate (r) = 4 %…

Q: The principal represents an amount of money deposited in a savings account subject to compound…

A: Given principal p=60000 The rate is r=3.5%=0.035 Time is 20 years The formula to evaluate the amount…

Q: Compound Interest If $4000 is borrowed at a rate of 5.75% interest per year, compounded quarterly,…

A: A=P1+rnnt

Q: Saving Money: Future value of an investment when we save money in an account, we typically deposit…

A: Formula to find future value of an investment based on interest and compounding periods. FV =P1+rnnt

Q: The principal represents an amount of money deposited in a savings account subject to compound…

A: Please check step 2 for solution.

Q: The principal represents an amount of money deposited in a savings account subject to compound…

A: Given: p = 7000 r = 7% n = 2

Q: Ann wants to save money to buy a motorcycle. She invests in an ordinary annuity that earns 7.8%…

A: *Answer:  How much money will she need to pay into the annuity each quarter to have a total value of…

Q: 2. A saving account earns 4% interest compounded quarterly. The account starts with $5000. A) write…

A: The principal amount is $5000. The rate of interest is 4%.

Q: Finding investment time If Juanita invests $1500 in a retirement account that earns 8% compounded…

A: To find the investment time.

Q: Find the amount accumulated FV in the given annuity account. HINT (See Quick Example 1 and Example…

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Q: Solve an annuity problem Question A deposit of $3,890 is placed into a scholarship fund at the…

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Q: Find the future value and interest of $10,000 at 5.8% compounded continuously for eight years. A.…

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Q: 3. Doubling time is the amount of time it takes to double an initial deposit. You deposit $20,000 in…

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Q: Compound Interest - Future Value. At the beginning of year 1, Chantelle deposited $25,000.00 in an…

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Q: Compound Interest Find the future value of $10,000invested for 10 years at 8%, compounded annually.

A: Given that, Invested amount P=$10000. No of years t=10. Rate r=8%

Q: Finance. Suppose that $7,500 is invested at 4.2% annual interest rate, compounded monthly. How much…

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Q: Finance. Suppose that $4,800 is invested at 5.2% annual interest rate, compounded monthly. How much…

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Q: A passbook savings account has a rate of 10%. Find the effective annual yield, rounded to the…

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Q: 19. BOND FUND Bernice Clarence places $45,000 in a bond fund that is currently yielding 8%…

A: Given: To find interest in the first year and if she decides to let all interest payment and that…

Q: A person wants to deposit $18,000 per year for 15 years. If interest is earned at the rate of 16%…

A: We will find out all the required values.

Q: Compound interest 1.If you put $10,000 in a savings account that earns 3.5% interest per year…

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Q: The principal represents an amount of money deposited in a savings account subject to compound…

A: Given: P(Principal)=7000  dollarsr(Rate)=6%=0.06Compounded Semiannuallyt(Time)=3  years

Q: Investment A offers a 10% return compounded semiannually and invest B offers a 9.75 rate of return…

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Q: Finance. Suppose that $7,500 is invested at 5.7% annual interest rate, compounded monthly. How much…

A: Investment is (P)= $7,500  Interest (r)= 5.7% = 0.057  n= 12 find amount in  A) 6 months , B) in 7…

Q: Sarah secured a bank loan of $170,000 for the purchase of a house. The mortgage is to be amortized…

A: Given:-Sarah secured a bank loan = $170,000Compounded monthly for 15 years interest rate = 3%Formula…

Q: 13. VALUE OF A BUSINESS Jessie Marquette believes her hair salon is worth $20,000 and estimates that…

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Q: You expect to retire in 15 years. Ater you retire, you want to be able to withdraw $2,500 from your…

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Q: he following money market account rates were available from a particular bank. Find the compound…

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Q: borrow

A: Please refer to the image below

Q: 64. Finding Time If Joenita invests $1500 in a retirement account that earns 8% compounded annually,…

A: Given Joenita invests $1500 means principal amount P = $1500 rate of interest = 0.08 We know that…