Present Value If you invest
where
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Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
- Future Value In certain savings scenarios, the value F of an investment after t years, the future value, is given by F=P1+rt. Here r is the yearly interest rate as a decimal, P is the amount of the original investment and t is the term of the investment. If we invest 1000 at an interest rate of 0.06 per year as a decimal, and if the term of the investment is 5 years, what is the future value?continuedarrow_forwardYour Childs Education You want to begin making regular deposits to finance your childs college education 18 years 216 months in the future. You are able to invest 200 at the end of each month, and you judge that 100, 000 will be needed. That is, you want the future value F of the investment to be 100, 000. Whether you can attain that goal depends on interest rates. If the monthaly interest rate is r as a decimal, then the future value of the investment is given by F=200r1+r216-1 dollars. a. Plot the graph of F along with the target value of 100, 000. Use a horizontal span of 0 to 0.01. b. Fina the monthly rate r that will yield the dsired future value of 100, 000. Round your answer as a percentage to one decimal place. c. What is your total investment in your childs education?arrow_forwardLending Money For a certain loan, the interest I due at the end of a loan period is given by I=Prt, where P is the principal barrowed, r is the yearly interest rate as a decimal, and t is the number of years since the money was barrowed. What interest is accrued if 3 years ago we barrowed 5000 at an interest rate of 5%?arrow_forward
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