Suppose $20,000 is invested at 6.5% compounded annually.

(a)Find the value of the investment after 5 years.

(b)Find the value of the interest which was earned over the first 5 years.

2)Suppose $2000 is invested at 6.5% compounded monthly.

(a)Find the value of the investment after 5 years.

(b)Find the value of the interest which was earned over the first 5 years

3)If $1,000 is invested at a nominal rate of 4% compounded quarterly for 5 years, find the compound amount

4)Determine the present value of $4000 due in 5 years if the interest rate is 10% compounded semiannually.

5)Find the present value of $5000 due in 3 years if the interest rate is 6 3/4%

compounded monthly

7)A trust fund for a newborn is being set up by a single payment so that at the end of 18 years there will be $34,000. If the fund earns interest at the rate of 6.25% compounded monthly, how much money should be paid into the fund initially

8)If $200 is deposited into a savings account that earns interest at an annual rate of 8% compounded continuously, find the value of the account at the end of two years.

9)A person deposits $1000 in a savings account that pays an interest rate of 4.75 % compounded continuously. Find the balance in the account at the end of 3.5 years.

10)Determine the effective rate equivalent to an annual rate of 10% compounded continuously.

Subject | Mathematics |

Due By (Pacific Time) | 11/17/2014 03:00 pm |

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