I need help with these few questions.

Each screenshot has the page number along with the number for each Question i need answered.

Please include the number of page and question number in the answers you provide. Thank you. I need help before midnight.

380 CHAPTER 10 Compound Interest and Inflation 10.1 Exercises MyLab Math The shaded sections below contain solutions to help you get a QUICK START on the various types of exercises. First fi Use the formula for compound amount, not the table, to find the compound amount and interest. annual See Examples 3 and 4.) Compound Amount Interest 11. 1. $12,000 at 8% compounded annually for 4 years $16,325.87 $4325.87 12 . Compound interest is 8% per year for 4 years. 13 . M = $12,000 X (1 + .08)4 = $12,000 X 1.08 X 1.08 X 1.08 X 1.08 = $16,325.87 14. 1 = $16,325.87 - $12,000 = $4325.87 Use 2. $14,800 at 6% compounded semiannually for 4 years @W/ 15. 3. $28,000 at 10% compounded quarterly for 1 year 16. 4. $20,000 at 5% compounded quarterly for 4 year Use values from the compound interest table on page 377 to find both the compound amount and the compound interest. (See Examples 3-6.) Compound Amount 5. $32,350 at 6% compounded annually for 4 years Interest Compound interest is 6% per year for 4 years. $40,841.23 $8491.23 M = $32,350 X 1.26248 = $40,841.23; 1 = $40,841.23 - $32,350 = $8491.23 6. $24,000 at 4% compounded annually for 10 years 7. $12,300 at 3% compounded semiannually for 4 years 8. $12,500 at 8% compounded quarterly for 5 years 9. $45,000 at 6% compounded semiannually for 5 years 10. $82,000 at 8% compounded semiannually for 4 years Page 380 Questions 4 & 10first find simple interest, then find compound interest assuming interest is compounded annually. Finally, find the excess of compound interest over simple interest. 10.1 Exercises Rate Number Principal of Years Simple 6% Interest Compound 11. $5400 4 Interest 12. $9200 5% $1296 $1417.39 Difference 13. $1200 8% a 15 $121.39 14 . $4625 4% 10 Use the table to solve the following application problems. / 15. CREDIT UNION Bill Jensen deposits $8500 with Bank of America in an investment paying $90 compounded semiannually. Find (a) the compound amount and (b) the interest in 6 years. Compound interest is 2 - 2.5% and there are 6 X 2 = 12 compounding periods. (a) $11,431.57 (2) M = $8500 X 1.34489 = $11,431.57; (b) 1 = $11, 431.57 - $8500 = $2931.57 (b) $2931.57 16. SAVINGS Vickie Ewing deposits her savings of $2800 in an investment paying 6% compounded quarterly and she leaves it there for 5 years. Find (a) the compound amount and (b) the interest. (a) (b ) 17. SAVINGS Tom Blasting invested $4500 in an investment paying 8% compe quarterly for 3 years. Find (a) the compound amount and (b) the interest. Page 381 18. INVESTMENT Josh Crandall deposited $6000 in an annuity expected to pay 5% Questions 14 & 16 compounded semiannually for 4 years. Find (a) the compound amount and (b) the interest. (b) c/ 19. INTERNATIONAL FINANCE Chi Tang, a businessperson from Taiwan, deposits 25,000 yuan in a (a) mutual fund with bonds managed by Bank of America that is expected to pay 6% compounded (b ) semiannually. Find (a) the balance in the account after 4 years and (b) the interest. (a) 20. UNITED KINGDOM A firm in the UK places f42,000 ( b ) (forty-two thousand pounds) in a bond paying 6% NatWest compounded quarterly and leaves it there as collat- eral for a loan. Find (a) the balance in the account after 1 year and (b) the interest. 21. 21. INVESTMENT DECI DECISION Bill Baxter has $25,000 to invest for a year. He can lend it to his sister, who has agreed to pay 10% simple interest for the year. Or, he can invest it in a retirement plan ex lan expected to pay 6% compounded quarterly for a year. How much addi- tional interest would the d the simple interest loan to his sister generate? Find the effective interest rate for both investments to the nearest hundredth of a percent.390 CHAPTER 10 Compound Interest and Inflation 10.2 Exercises / MyLab Math The shaded sections below contain solutions to help you get a QUICK START on the various types of exercises. SO col Find the interest earned by the following. Assume 3 2% interest compounded daily. Consumer price See Examples 1-3. Amount Date Deposited Date Withdrawn Interest Earned 1. $4800 July 6 September 30 $39.75 There are (31 - 6) + 31 + 30 = 86 days. Interest is $4800 X 1.008280273 - $4800 = $39.75. 2. $3850 January 5 February 9 $12.94 There are ( 31 - 5) + 9 = 35 days. Interest is $3850 X 1.003361641 - $3850 = $12.94. 3. $8200 October 4 December 7 nobistal lent ewords 4. $2830 May 4 June 23 usBut not nala almond show of land og of bea 5. $17,958 September 9 and justin November 7 arewerle slamaxe 6. $12,000 December 3 February 20 hub wish babain- nousital to Find the compound amount for each of the following certificates of deposit. Assume daily compounding. (See Example 4.) Amount Interest Time in Compound Deposited Rate Years Amount 7. $3900 2% $3900 X 1.02020078 = $3978.78 $3978.78 8. $8000 4% 9. $12,900 3% 10 T ben 10. $3600.40 1% 3 11. Give three reasons to save and invest. Discuss why it is difficult to save. 12. List five ways in which inflation affects your family. (See Objective 4.) nodslob mori be Page 390 an exercise that is related to th Question 6 & 10392 CHAPTER 10 Compound Interest and Inflation (a) 20. PUTTING UP COLLATERAL Joni Perez needs to (b ) borrow $20,000 to open a welding shop, but the bank will not lend her the money. Joni's uncle agrees to put up collateral for the loan with a $20,000, 4-year certificate of deposit paying 4% compounded daily. This means that the bank will take all or part of his deposit if Perez should fail to repay the loan. Find (a) the compound amount earned by her uncle and (b) the interest earned by her uncle. 21. RETIREMENT INCOME The Walters accumulated $235,000 during 40 years of work. 21. They originally deposited this money in a 5-year time deposit earning 3% and used the income for living expenses. On renewing the time deposit, they found that interest rates on a 5-year time deposit had fallen and that they were going to receive only 2%. Find the dif- ference in their annual income due to the decline in interest rates. (Hint: Don't use the compound interest table.) Page 392 22. INHERITANCE Jessica Thompson inherited $80,000 and decided to put the Question 20 in one of two 4-year time deposits. The first time deposit yielded 3%, but the second yielded only 1%. Find the difference in the annual income. (Hint: Don't use the compound interest table.) 23. PURCHASING POWER A family with an income and spending budget of $32,400 receives an increase in income of 1% after taxes in 23. a year when inflation is 2.8%. Find the net gain or loss in purchasing power. RT THUOSA BOLIVAR C/ 24. INFLATION AND RETIREMENT Ben and Martha Wheeler are retired and they have $184,500 in a savings account at Bank of America paying 3 2% compounded daily. What 24. is their gain or loss in purchasing power from interest in a year in which inflation is 2.5%? 25. CORPORATE SAVINGS Dayton Tires has $180,000 to invest for 1 year. Find the future value if it earns (a) 2% per year compounded daily and (b) 3% per year compounded daily. (c) Then find the difference between the two. (a) (b) (c) 26. EMERGENCY CASH After working long days in her small business for years, Kaitlyn Plank was finally making money. Since she was worried about emergencies, she decided to put $85,000 in an investment for 4 years. Find the future value if it e year compounded daily and (b) 4% per yea (a) ence between the1 $209,881 assuming 6% compounded quarterly for 4 years 1.5% per quarter for 4 X 4 = 16 compounding periods. The value from the pre- sent value of a dollar table on page 395 is .78803. Present value = $209,881 X .78803 = $165,393 (rounded) Page 397 Thus, the partners should ask $165,400 for their business. The rapid growth rate adds abo $165,400 - $120,000 = $45,400 to the value of the business. Question 6 QUICK CHECK 4 Assuming normal growth, a clothing store is worth $100,000. But the owners believe it wil grow at 9% per year for the next three years. Estimate a reasonable selling price for the business by finding the present value at 5% per year compounded semiannually. 10.3 Exercises MyLab Math The shaded sections below contain solutions to help you get a QUICK START on the various types of exercises. Find the present value and interest earned for each. (See Examples 1 and 2.) Amount Needed Time (Years) Interest Compounded 1. $12,300 Present Value 3 Interest Earned 6% annually P = $12,300 X .83962 = $10,327.33; 1 = $12,300 - $10,327.33 = $1972.67 $10,327.33 $1972.67 2. $14,500 27 8% quarterly P = $14,500 X .82035 = $11,895.08; 1 = $14,500 - $11,895.08 = $2604.92 $11, 895.08 $2604.92 3. $9350 4 5% semiannually 4. $269,000 5 8% semiannually 5. $18,853 11 6% quarterly 6. $20,984 9 4% quarterly Solve the following application problems. 7. DIVORCE SETTLEMENT Part of Abernathy's divorce settlement involves setting aside (a) $30, 315.20 money today for college tuition for their daughter who enters college in 7 years. They (b) $9684.80 estimate that the cost of four years' tuition and fees at the state university their daughter will attend will be $40,000. Find (a) the lump sum that must be invested at 4% com- pounded semiannually and (b) the amount of interest earned. (a) Lump sum = P = $40,000 X .75788 = $30,315.20 16) 1 = $40,000 - $30,315.20 = $9684.80 (a) 8. SELF-EMPLOYMENT Samantha Garcia needs $25,000 in (b ) 4 years to start her own daycare business. (a) What lump sum should be invested today at 5%, compounded semiannually, to produce the needed amount? (b) How much interest will be earned ? 9. . FINANCING COLLEGE EXPENSES Mrs. Lorez wants all of her grandchildren to go to college and decides to help financially. How much must she give to each child at birth if they are to have $10,000 on entering college 18 years later, assuming 6% interest compounded annually?398 CHAPTER 10 Compound Interest and Inflation 10. BAKERY Carlos Mora recently immigrated to the United States from Central America. 10. His family has agreed to help him set aside the cash needed to open a small bakery in 2 years once he completes a program at a culinary institute. Find the amount they must deposit today in an investment account expected to yield 4% compounded quarterly if he needs $95,000 to open the shop in 2 years. 11. EXPANDING MANUFACTURING OPERATIONS Quantum Logic recently expanded its oper- (a) ations at a cost of $450,000. Management expects that the value of the investment will (b ) grow at a rate of 12% per year compounded annually for the next 5 years. (a) Find the future value of the investment. (b) Find the present value of the amount found in part (a) at a rate of 6% compounded annually. Round to the nearest dollar at each step. 12. BUSINESS EXPANSION Village Hardware expands its business at a cost of $20,000. They (a) expect that the investment will grow at a rate of 10% per year compounded annually for the next 4 years. (a) Find the future value of the investment. (b) Find the present value of (b) the amount found in part (a) at a rate of 6% compounded annually. Round to the nearest dollar at each step. 13. VALUE OF A BUSINESS Jessie Marquette believes her hair salon is worth $20,000 and estimates that its value will grow at 10% per year compounded annually for the next (a) 3 years. If she sells the business, the funds will be invested at 8% compounded quarterly. (b ) (a) Find the future value if she holds onto the business. (b) What price should she insist on now if she sells the business? Round to the nearest dollar. 14. VALUE OF A BUSINESS John Fernandez figures his bike shop is worth $88,000 if sold today and that it will grow in value at 8% per year compounded annually for the next (a) 6 years. If he sells the business, the funds will be invested at 5% compounded semiannu- (b ) ally. (a) Find the future value of the shop. (b) What price should he insist on at this time if he sells the business? 15. Explain the difference between future value and present value. (See Objective 1.) 16. Explain how to value a rapidly growing business. (See Objective 3.) Page 398 Questions 14 & 15 1. $18,681.50 QUICK CHECK ANSWERS