ORIE 3150
Homework #6
Due March 4, 2009
Please put your section number on your homework
1.
Bruiser Corporation deposits $40,000 in cash into an interestbearing account at the
Tompkins Trust, earning a nominal, annual rate of 2.3%, compounded monthly.
How
many months, to the nearest integer month, must the deposit remain in the bank earning
interest to grow to $80,000, assuming no other deposits or withdrawals?
(
29
(
29
362
12
023
.
0
1
ln
2
ln
i
1
ln
PV
FV
ln
n
=
+
=
+
=
Note:
You should key in 0.023, divide by 12, add 1, then take the log.
Quite a few students
took 0.023, divided by 12, then wrote down the answer, rounded it to 0.0019, then
punched this number in and calculated 365.
This is not an accurate answer.
You may
wish to consider switching to a Hewlett Packard calculator, or another brand using the
RPN entry system.
Texas Instruments calculators are by far #1 in the student calculator
market not by virtue of their ease of accurate use, but because of their excellent
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 Spring '08
 CALLISTER
 1922, 1916, 1913, 1926, 1939

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