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MATH 320
HOMEWORK 2
Due Wednesday, September 8
1. An investment worth $500 on January 1, 1990, is worth $600 on January
1, 1992. What is its value
(a) On January 1, 1993, assuming simple interest
(b) On January 1, 1993, assuming compound interest
(c) On July 1, 1991, assuming simple interest
(d) On July 1, 1991, assuming compound interest
(e) On January 1, 1989, assuming simple interest
(f) On January 1, 1989, assuming compound interest
2. At a certain rate of compound interest, it is found that 1 grows to 2
in
x
years, 2 grows to 3 in
y
years, and 1 grows to 5 in
z
years. Show
that 6 grows to 10 in
z

x

y
years.
3. Henry has an investment of $1000 on January 1, 1988 at a compound
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 Spring '10
 Dr.K
 Math

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