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Comp. Int Alt - 10,000,000 2.7182816941 50,000,000...

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Compounding n Yield yearly 1 $3,465.132568 0.0545000000 5.45% quarterly 4 $3,470.674292 0.0556239956 5.56% monthly 12 $3,471.947686 0.0558821863 5.59% daily 365 $3,472.569143 0.0560081801 5.60% hourly 8,760 $3,472.589452 0.0560122974 5.60% every minute 525,600 $3,472.590321 0.0560124734 5.60% every second 31,536,000 $3,472.590324 0.0560124741 5.60% Value after 1- 1/2 years Percentage Yield COMPOUND INTEREST We start with $3,200.00 that is invested at an annual rate of 5.45%, compounded n times per year. Mathema P The Ma © 2007 b The Unive
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atics for Business Decisions, Part 1a Release 1.53a, 2007 Published and Distributed by athematical Association of America by The Arizona Board of Regents for ersity of Arizona. All rights reserved.
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m 1 2.0000000000 5 2.4883200000 10 2.5937424601 50 2.6915880291 100 2.7048138294 500 2.7155685207 1,000 2.7169239322 5,000 2.7180100501 10,000 2.7181459268 50,000 2.7182546461 100,000 2.7182682372 500,000 2.7182791103 1,000,000 2.7182804691 5,000,000
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Unformatted text preview: 10,000,000 2.7182816941 50,000,000 2.7182818149 (1 + 1/ m ) m APPROXIMATION OF EULER'S CONSTANT Current value of all payments: $2,149 Rate: 6.25% i Payment Total Payments 1 0.994805 0.044441 $95.50 $2,292.07 $143.07 2 0.989637 3 0.984496 4 0.979382 5 0.974294 6 0.969233 7 0.964198 8 0.959189 9 0.954207 10 0.949250 11 0.944319 12 0.939413 13 0.934533 14 0.929678 15 0.924849 16 0.920044 17 0.915265 18 0.910510 e-ri /12 Extra Amount Paid We will evaluate the expression in Example 8 of the section Compound Interest which gives the amount of each monthly payment toward a computer. EVALUATING A SUM 1 24 1 12 / 149 , 2 $-= ⋅- ⋅ = ∑ i i r e F 1 24 1 12 /-= ⋅- ∑ i i r e 19 0.905780 20 0.901075 21 0.896394 22 0.891738 23 0.887105 24 0.882497...
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