Math 71 Supplement 9-15-09

# Math 71 Supplement 9-15-09 - Math 71 Supplement a Suppose a...

This preview shows page 1. Sign up to view the full content.

Math 71 Supplement 9-15-09 Suppose a person invest \$P in an account that earns 100r % in (annual) interest compounded k times annually. Then after n time compounding period, the amount \$A in the account is given by A = P 1+ i ( ) n , where i = r k . 1. Suppose a person invest \$1,234 in an account that earns in interest 3.2% compounded annually in interest. How much will this person have after 76 months? 2. Suppose a person invest \$1,234 in an account that earns in interest 3.2% compounded semi-annually in interest. How much will this person have after 76 months? 3. Suppose a person invest \$1,234 in an account that earns in interest 3.2% compounded quarterly in interest. How much will this person have after 76 months? 4. Suppose a person invest \$1,234 in an account that earns in interest 3.2% compounded monthly in interest. How much will this person have after 76 months? 5. Suppose a person invest \$1,234 in an account that earns compounded monthly interest. After 70 month, she has \$1,500. What is the interest rate of the account?
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Ask a homework question - tutors are online