how long did John’s father investment have to grow from the day it was open until the day it was closed

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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how long did John’s father investment have to grow from the day it was open until the day it was closed
Jon was born on March 1, 1983. On the day he was
born, Jon's grandfather made an investment of $1,000
in Jon's name at a simple interest rate of 8%. On
Jon's first birthday, his father opened an investment
account for Jon at a different bank with an initial deposit
of $2,500. This account has a compound annual
interest rate of 4.5%. Jon learns about these accounts
after finishing graduate school and decides to close the
accounts on September 1, 2018 and reinvest the
money into his retirement account.
h
b
Transcribed Image Text:Jon was born on March 1, 1983. On the day he was born, Jon's grandfather made an investment of $1,000 in Jon's name at a simple interest rate of 8%. On Jon's first birthday, his father opened an investment account for Jon at a different bank with an initial deposit of $2,500. This account has a compound annual interest rate of 4.5%. Jon learns about these accounts after finishing graduate school and decides to close the accounts on September 1, 2018 and reinvest the money into his retirement account. h b
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