Question: 1.) How many years will it take for an initial investment of $10,000 to grow to $35,000?Assume a rate of interest of 20% compounded continuously.

1.) How many years will it take for an initial investment of $10,000 to grow to $35,000?Assume a rate of interest of 20% compounded continuously.

2.)Jim places $10,000 in a bank account that pays 13.7% compounded continuously. After 2 years, will he have enough money to buy a car that costs $13,160? If another bank will pay Jim 14% compounded quarterly, is this a better deal?

3.) Trish invests $6,000 in her IRA in a bond trust that pays 6% interest compounded quarterly. Sean invests $6,000 in his IRA in a certificate of deposit that pays 5.9% compounded continuously. Who has more money after 20 years, Trish or Sean?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!

O Points 0 of 2 How many years will it take for an initial investment of 20 000 to grow to 70 000 Assume a rate of interest of 2 compounded continuously t will take about 27 20 years for the...

How many years will it take for an initial investment of 20 000 to grow to 70 000 Assume a rate of interest of 2 compounded continuously It will take about years for the investment to grow to 70 000...

If Qs = -20 + 10p, and Qd = 400 - 20p, what is the equilibrium quantity? 2.Assume that a firm buys $1 million worth of resources in the market for factors of production. Based on the circular flow...

Title Subtitle Subtle Em Normal No Spaci.. Heading 1 Heading 2 Styles Font Paragraph The following form (and button click methods) is based on two different examples from the MIS 221 text ine how...

16 AKS 2b The graph of the function f x log x 4 characteristics of h x llertical Asymptore X 4 5 4 2 10 left 2 3 2 3 Domain 4 x y f Positive left hight is shown below List the Negative Decreasing...

1 (Future value) To what amount will $5,200 invested for 9 years at 10 percent compounded annually accumulate? $5,200 invested for 9 years at 10 percent compounded annually will accumulate to $....

1. How many years will it take to double your money if you make an investment that pays annual simple interest of 10%? 2. How many years (to two decimal places) will it take to double your money if...

Please answer all the questions below. Questions: (a) How many years will it take an investment of $1,000 to grow to $2,500 if the investment pays 5% p.a. compounded monthly? [2 marks] (b) A...

Instructor: Liuren Wu Course: 2018SpringFIN3000FTRB Assignment: Version-C tudent 1. What is the present value of an investment that pays $400 at the end of three years and $700 at the and of 10 years...

Karl Stick is president of Stock Company. He also owns 100 percent of its stock. Karl's salary is $120,000. At the end of the year, Karl was paid a bonus of $100,000 because the firm had a good year....

Using the notation of your choice, draw a process diagram of a software development process that prototypes three different designs and choose the best from among them.

Luciana would like to buy their first car ( a beautiful blue Honda Civic ) . The car is priced at $ 2 0 2 0 , 0 0 0 0 0 0 and they need to come up with a down payment of $ 3 3 , 0 0 0 0 0 0 . Luciana...

A party in a small claims trial cannot have a lawyer represent them. True False

7.6 Describe the majortypes of selection interviews by degree of structure, type of content, and manner of administration.

7.5 Describe at least four types of testing used in selection, and analyze the conflicting legal concerns related to alcohol and drug testing.

7.4 Define reliability and validity, and explain their importance in selection techniques.