1. Ryan is investing $9000 in a CD at a bank. If the bank uses simple...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. Ryan is investing $9000 in a CD at a bank. If the bank uses simple interest and the bank pays 3.1% annually, how much will the CD be worth in total at the end of 5 years when the CD matures? Jim saw that different banks offered the same rates but compounded the interest more often. Consider if he put $15,000 into a savings account for 5 years that provided 2.8% annually but compounded it in each of the following ways (fill out the table): Compounded 2. Semi-Annually 3. Monthly Work: #2 #3 #4 4. Quarterly #5 5. Weekly #6 6. Daily 7. Continuously #7 Value in 5 Years 8. Why does your investment increase more as your compounds per year increase? Determine which investment is best. Evan plans to invest $10000 for 8 years. 9. Better Banks offers an 8 year CD at an annual rate of 5% using simple interest. 10. America's Bank offers an 8 year CD at annual rate of 4.7% using monthly compound interest. 11. Union Bank offers an 8 year CD at an annual rate of 4.5% using continuous compounding Mark wants to invest $10,000. In a CD for at least 10 years. 12. The first choice is a CD that pays 4% annually and uses simple interest. Write a formula that describes the total value of the investment as a function of time. 20000 19000 18000 13. The second choice is a CD that pays 3.2% annually and uses compound interest. The investment is compounded monthly. Write a formula that describes the total value of the investment as a function of time. 14. For specifically what set of years after the investment is the simple interest investment better and when is the compound interest investment better? 17000 18000 15000 14000 13000 12000 11000 10000 2 4 6 8 10 12 14 16 18 20 15. Ten years ago, Josh put $12,000 into an account paying 5.5% compounded continuously. How much money does the account have now? 16. Amy wants to have $50,000 in 6 years. She will put it into an account paying 5.5% compounded quarterly. How much does she need to deposit now for this to occur? 1. Ryan is investing $9000 in a CD at a bank. If the bank uses simple interest and the bank pays 3.1% annually, how much will the CD be worth in total at the end of 5 years when the CD matures? Jim saw that different banks offered the same rates but compounded the interest more often. Consider if he put $15,000 into a savings account for 5 years that provided 2.8% annually but compounded it in each of the following ways (fill out the table): Compounded 2. Semi-Annually 3. Monthly Work: #2 #3 #4 4. Quarterly #5 5. Weekly #6 6. Daily 7. Continuously #7 Value in 5 Years 8. Why does your investment increase more as your compounds per year increase? Determine which investment is best. Evan plans to invest $10000 for 8 years. 9. Better Banks offers an 8 year CD at an annual rate of 5% using simple interest. 10. America's Bank offers an 8 year CD at annual rate of 4.7% using monthly compound interest. 11. Union Bank offers an 8 year CD at an annual rate of 4.5% using continuous compounding Mark wants to invest $10,000. In a CD for at least 10 years. 12. The first choice is a CD that pays 4% annually and uses simple interest. Write a formula that describes the total value of the investment as a function of time. 20000 19000 18000 13. The second choice is a CD that pays 3.2% annually and uses compound interest. The investment is compounded monthly. Write a formula that describes the total value of the investment as a function of time. 14. For specifically what set of years after the investment is the simple interest investment better and when is the compound interest investment better? 17000 18000 15000 14000 13000 12000 11000 10000 2 4 6 8 10 12 14 16 18 20 15. Ten years ago, Josh put $12,000 into an account paying 5.5% compounded continuously. How much money does the account have now? 16. Amy wants to have $50,000 in 6 years. She will put it into an account paying 5.5% compounded quarterly. How much does she need to deposit now for this to occur?
Expert Answer:
Related Book For
Personal Finance Turning Money into Wealth
ISBN: 978-0134730363
8th edition
Authors: Arthur J. Keown
Posted Date:
Students also viewed these mathematics questions
-
1. Steve recently graduated with his Masters degree, and landed a great job. He decided that he wants to begin investing and he has asked you for advice. He wants to know that if he invests 2,000...
-
Compose an inference essay that predicts the future of the economy of the Philippines for the next six years. Rubric: Inferencing 1. Begin with evidence 2. Compose an inference essay that predicts...
-
Give parametric equations and parameter intervals for the motion of a particle in the xy-plane. Identify the particles path by finding a Cartesian equation for it. Graph the Cartesian equation....
-
Locate the numbers z1 + z2 and z1 z2 vectorially when (a) z1 = 2i, z2 = 2/3 - I; (b) z1 = (-3, 1), z2 = (3,0); (c) z1 = (-3, 1) z2 = (1, 4); (d) z1 = x1 + iy1, z2 = x1 - iy1.
-
In Exercises 610, perform the indicated matrix operations or solve the matrix equation for X given that A, B, and C are defined as follows. If an operation is not defined, state the reason. A(B + C)...
-
In 1970, Rose Mary Knick purchased 90 acres of land in Scott Township, Lackawanna County, Pennsylvania. In 2008, another resident of Scott Township discovered documents that suggested that one of...
-
Wolf Creek Golf Inc. was organized on July 1, 2014. Quarterly financial statements are prepared. The trial balance and adjusted trial balance on September 30 are shown here. Instructions (a)...
-
Jane has been offered a research consultancy job to study the impact of inequality of poverty in five SADC countries of her choice. As her former classmate, Jane has asked you to help advise her on...
-
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity...
-
10. On October 7, 2010, ENRNewYork of McGraw-Hill reported: "New Jersey Governor Chris Christie today killed the $8.7 billion Trans-Hudson River passenger rail tunnel project that was expected to...
-
The costs of equity are 17% for Lindner and 15% for Allen. Lindner plans to offer $5.00 cash and 1.5 shares of its own stock for each share of Allen a. Assume no synergy. What are the gains (losses)...
-
The Detroit Company which makes wooden chicken coops, is creating their Direct Materials Budget for the upcoming year. Detroit estimated the following: Units of Production Needed for next year is...
-
PPO stock has a beta of 0.97 and an expected return of 11.22 percent. The risk-free rate of return is 2.48 percent. What is the expected return on the market?
-
With the sieve of Eratosthenes being used to find and count prime numbers. Describe how sieve methods are used in number theory. What kind of results have been established using such methods?
-
Consider two bakery chains - a and b. bakery a and its supply chain are in the business of making custom made cakes for special occasions and sell them to clubs and schools. Bakery b and its supply...
-
Independent random samples of sizes n1 = 30 and n2 = 50 are taken from two normal populations having the means 1 = 78 and 2 = 75 and the variances 21 = 150 and 22 = 200. Use the results of Exercise...
-
In a talk at the White House in December 2009, President Barack Obama argued, Ultimately in this country we rise and fall together: banks and small businesses, consumers and large corporations. Why...
-
An article in the New York Times in mid-2012 noted, with the economy still struggling and new regulations meant to eliminate bad lending, bank loans continue to lag. a. What does the article mean by...
-
What is money? Why do we need money?
Study smarter with the SolutionInn App