Phoebe needs $6000 one year from now to finance the recording of her acoustic music album. Phoebe has $1200 that she can put in a high-interest savings account that has an interest rate of 2.1% compounded daily. She also has $2500 in a bond earning 1.7% interest compounded monthly that she can cash in at any time. a) How much money will Phoebe need to deposit monthly into an account that earns 1.25% interest compounded monthly in order to finance her album? b) Calculate the rate of return on Phoebe's investments.
Phoebe needs $6000 one year from now to finance the recording of her acoustic music album. Phoebe has $1200 that she can put in a high-interest savings account that has an interest rate of 2.1% compounded daily. She also has $2500 in a bond earning 1.7% interest compounded monthly that she can cash in at any time. a) How much money will Phoebe need to deposit monthly into an account that earns 1.25% interest compounded monthly in order to finance her album? b) Calculate the rate of return on Phoebe's investments.
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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Transcribed Image Text:Phoebe needs $6000 one year from now to
finance the recording of her acoustic music album.
Phoebe has $1200 that she can put in a high-interest
savings account that has an interest rate of 2.1%
compounded daily.
She also has $2500 in a bond earning 1.7% interest
compounded monthly that she can cash in at any
time.
a) How much money will Phoebe need to deposit
monthly into an account that earns 1.25% interest
compounded monthly in order to finance her
album?
b) Calculate the rate of return on Phoebe's
investments.
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