Nami

$\_$ Written Assignment Chapter $3\mathrm{.}3$

$15$ points each problem

In order to accumulate enough money for a down payment on a house, a couple deposits $$300$ per month into an account paying $6\%$ compounded monthly. If payments are made at the end of each period, how much money will be in the account in $5$ years? Write out the formula that you need to use, then fill in the formula with the appropriate numbers, give the answer to the nearest penny.

The Hartford offered an annuity that pays $5\mathrm{.}5\%$ compounded monthly. What equal monthly deposit should be made into this annuity in order to have $$100,000$ in $10$ years? Write out the formula that you need to use, then fill in the formula with the appropriate numbers, give the answer to the nearest penny.

A person invests $$2,000$ annually in an IRA. At the end of $6$ years, the amount in the fund is $$14,000.$ What annual nominal compounding rate has this fund earned? Use graphical approximation on your calculator. Let $y_1$ be $$14,000,$ and let $y_2$ be the other side of the equation.

Use a window $x=[0,0\mathrm{.}10]$ scale $0\mathrm{.}01$;$y=[0,20000]$ scale $1000.$ Write your answer as a percentage with $2$ decimals, like $15\mathrm{.}61\%$