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October University for Modern Sciences & Arts (MSA) Faculty of Management Sciences Module Title: Basic Mathematics Mid Term Exam - Spring 2017 Module Code: MTH112 Model Answer Answer all questions: (Total Marks 100) Problem 1: (30 marks) A family wants to begin saving for a trip to Europe. The family wants to accumulate \$10,000 for the trip, so they decided to invest \$5,000 in an account which earns interest at a rate of 12% per year compounded quarterly. a) How long will it take the family in order to accumulate the \$10,000 needed to make the trip?(round your answer to the nearest year) (22 marks) mt m r P A ) 1 ( t 4 ) 4 12 . 0 1 ( 000 , 5 000 , 10 years t t t 6 862 . 5 03 . 1 ln 4 2 ln ) 03 . 1 ( 2 4 b) How much money should they invest today in the same account if they want to make the trip 3 years from now?(round your answer to the nearest dollar) (8 marks) \$ 014 , 7 7988 . 7013 ) 4 12 . 0 1 ( 000 , 10 ) 3 ( 4 P P ) 1 ( rt P A mt m r P A ) 1 ( rt Pe A m r i / mt n 1

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