(Related to Checkpoint 5.2) (Future value) Leslie Mosallam, who recently sold her Porsche, placed $10,400 in...

 

 

 

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(Related to Checkpoint 5.2) (Future value) Leslie Mosallam, who recently sold her Porsche, placed $10,400 in a savings account paying annual compound interest of 5 percent. a. Calculate the amount of money that will accumulate if Leslie leaves the money in the bank for 3, 7, and 17 year(s). b. Suppose Leslie moves her money into an account that pays 7 percent or one that pays 9 percent. Rework part (a) using 7 percent and 9 percent. c. What conclusions can you draw about the relationship between interest rates, time, and future sums from the calculations you just did? a. After placing $10,400 in a savings account paying annual compound interest of 5 percent, the amount of money that will accumulate if Leslie leaves the money in the bank for 3 year(s) is $ (Round to the nearest cent.) (Related to Checkpoint 5.3) (Compound interest with non-annual periods) Calculate the amount of money that will be in each of the following accounts at the end of the given deposit period: Compounding Compounding Account Holder Amount Annual Interest Rate Periods Per Year (M) Periods (Years) Theodore Logan III $ Vernell Coles Deposited 900 96,000 16% 8 Tina Elliot 8,000 8 Wayne Robinson 121,000 8 Eunice Chung Kelly Cravens 28,000 13,000 18 12 (Click on the icon in order to copy its contents into a spreadsheet.) 3 6 6 3 4 5 1 5 2 12 4 3 a. The amount of money in Theodore Logan III's account at the end of 6 years will be $ . (Round to the nearest cent.) (Related to Checkpoint 5.5) (Solving for n) How many years will it take for $480 to grow to $1,054.89 if it's invested at 9 percent compounded annually? The number of years it will take for $480 to grow to $1,054.89 at 9 percent compounded annually is years. (Round to one decimal place.) (Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $2.3 million at the time of her retirement in 34 years. She has found a mutual fund that will earn 5 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 16 percent, how soon could she then retire? a. If Sarah can earn 5 percent annually for the next 34 years, the amount of money she will have to invest today is $ (Round to the nearest cent.) (Related to Checkpoint 5.2) (Future value) Leslie Mosallam, who recently sold her Porsche, placed $10,400 in a savings account paying annual compound interest of 5 percent. a. Calculate the amount of money that will accumulate if Leslie leaves the money in the bank for 3, 7, and 17 year(s). b. Suppose Leslie moves her money into an account that pays 7 percent or one that pays 9 percent. Rework part (a) using 7 percent and 9 percent. c. What conclusions can you draw about the relationship between interest rates, time, and future sums from the calculations you just did? a. After placing $10,400 in a savings account paying annual compound interest of 5 percent, the amount of money that will accumulate if Leslie leaves the money in the bank for 3 year(s) is $ (Round to the nearest cent.) (Related to Checkpoint 5.3) (Compound interest with non-annual periods) Calculate the amount of money that will be in each of the following accounts at the end of the given deposit period: Compounding Compounding Account Holder Amount Annual Interest Rate Periods Per Year (M) Periods (Years) Theodore Logan III $ Vernell Coles Deposited 900 96,000 16% 8 Tina Elliot 8,000 8 Wayne Robinson 121,000 8 Eunice Chung Kelly Cravens 28,000 13,000 18 12 (Click on the icon in order to copy its contents into a spreadsheet.) 3 6 6 3 4 5 1 5 2 12 4 3 a. The amount of money in Theodore Logan III's account at the end of 6 years will be $ . (Round to the nearest cent.) (Related to Checkpoint 5.5) (Solving for n) How many years will it take for $480 to grow to $1,054.89 if it's invested at 9 percent compounded annually? The number of years it will take for $480 to grow to $1,054.89 at 9 percent compounded annually is years. (Round to one decimal place.) (Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $2.3 million at the time of her retirement in 34 years. She has found a mutual fund that will earn 5 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 16 percent, how soon could she then retire? a. If Sarah can earn 5 percent annually for the next 34 years, the amount of money she will have to invest today is $ (Round to the nearest cent.)