For Exercises 61-70, use the model A = P e r t or A = P ( 1 + r n ) n t where A is the future value of P dollars invested at interest rate r compounded continuously or n times per year for t years. (See Example 11) 63. A $2500 bond grows to $3729.56 in 10 yr under continuous compounding. Find the interest rate. Round to the nearest whole percent.
For Exercises 61-70, use the model A = P e r t or A = P ( 1 + r n ) n t where A is the future value of P dollars invested at interest rate r compounded continuously or n times per year for t years. (See Example 11) 63. A $2500 bond grows to $3729.56 in 10 yr under continuous compounding. Find the interest rate. Round to the nearest whole percent.
Solution Summary: The author explains that the rate of interest to the nearest percentage is lA=Pert.
For Exercises 61-70, use the model
A
=
P
e
r
t
or
A
=
P
(
1
+
r
n
)
n
t
where A is the future value of P dollars invested at interest rate r compounded continuously or n times per year for t years. (See Example 11)
63. A $2500 bond grows to $3729.56 in 10 yr under continuous compounding. Find the interest rate. Round to the nearest whole percent.
6) How much does Samantha need to invest today to have $35000 in 10 years, if she invests her money at 8.25% interest per year, compounded monthly?
7a) Predict the effect of doubling the amount wanted at the end of an investment, on the present value of the investment.b)Justify your answer to part a) using the present value formula.c)Give an example to demonstrate your prediction.d)Does doubling the amount of time for an investment have the same effect on thepresent value as doubling the amount wanted at the end of the investment? Justifyyour answer with an example.
The Nobel Prize Foundation recognizes its achievers by giving the equivalence of $10,000,000.00 every year to all the yearly awardees since the start of the foundation. the compounded rate applicable has always been 12%. To continuously sustain this activity, what do you think was the initial amount of money invested? with formula and explanation
Suppose you make an investment of $1000 that you are not allowed to cash in for 50 years. Unfortunately, the value of the investment decreases by 10% per year.How long will it be before your investment decreases to half its original value? Round your answer to one decimal place.
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