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Unformatted text preview: MAC114024
Section 4.6 What problems are the most difficult for you? A4 Question 1: (1 point) (EH; “WWW [4.6.1aPT]Find the amount that results from $765 invested at 14% com 12% fr yr p01 nded quarterly after a period of 10 years. f ‘
4’ ‘ n I 765(1 + 911:1)40 A; miracy‘ r Are; U @765 ,q 1.10410 T J 7615 ‘3'” I 7550*?)
“comfwﬁ‘h D (HE—’4 )40 m1 3) ,
ﬁlmWool? u 765(1 + 9&5)” A‘j [3° Question 2: (1 point)
[4.6.1aPT]Find the amount that results from $500 invested at 6% com pounded daily after a period of 3 years. :1 500(1+ %% 3 Pcsof) 5mm“ :93 34551
\/I 500(1 + 0% 1°95 F: '6 545
500 ‘ . “:565
[J W +: 5
D 500 ﬁzz—i
(HEMP Question 3: (1 point)
[4.6.1bPT]If an investment pays 6% compounded daily, how much should
you deposit now to have $500 in three years? (1 + :10) 1095 r: 4706
egg 3 = I 653 3
U 0000 + 36—5 +1 5 ?_________‘ 56'
500 06 '015
U (He—s)“ 1500 (H 3 "5
Question 4: (1 point) hi’ ‘
A: P(4+ L) — .05 was
Y' L55 ' 1’ 1'5
, P 09% . 3
:5 500 w (A + 565 we? [4.6.1bPT]If an investment pays 8%. compounded annually, how much
should you deposit now to have $6,676 in twelve years?  0.08 12 .7 . .os’) “1
U 6, + "ﬁ 2.5% a _ é u '6, 676(1 +0.08)12 Inf 9 I": 5:51)" 667 " A (IN03>” A': t we 6 m 6670 ' ' l 6 U w 6430: .09)  “4 n ) 2 +1 _? a“ a r'ogy} Question 5: (1 point)
[4.6.1cPT]What is the amount in 5 years of $6,000 imgesatpgzs at 10.6% compounded continuously? ‘ A"; Md
[1 6.000 A" ‘PC ﬂ 4/ c
:07??? v 7 w 5’5) (5 5
u 6, 000.25.3 P16 .0“, A: W er ' 5 n
\/I 6, 0006“53 r; .906 ‘W
D gégoag : 5 Question 6: (1 point)
[4.6.1dPT]A note @6000 at maturity in 5 years. How much is t e note worth nowi assuming continuous compoundng at 10.6%? I " : 0 .56
a 053 d. “500 491% = 726 5
U 6, 0008 P: , =7 {55)
u 6, 000.25~3 3; 9" 8' e
6000 4': _ n my
a 7:1“— .l06.5 =>Pw 6,000: PL c Question 7: (1 point)
[4.6.1dPT‘]A note will pay $5,689 at maturity in 8 years. How much is
the note worth now, assuming continuous compounding at 3.9%? 5 7 u 5, 689e3‘” A = 548‘? . x ’03;
 ’ _ .m.
‘4 P " 0m gem—33.7,. “we
’ 5689 3 ~ = Jul ‘ ' U : 0.312 +: 5 3
0,6896 5m: P 8’ OsgtgaP: 45:. Question 8: (1 point) 2. °
[4.6.2aPT]Find the effective rate of interest for 8% compounded monthly. _ t " 1.2;
rev 0 ‘67 “l rc=(r+'%)—I_ rcrIC *Iﬁy‘" ) I3. .08 _
(1+0.08)‘2——1 ; (l *7: u
[1 (1+ 008)12
'v‘ (1+ gig—‘3 1" ~ 1 0.08
D + 13 12 Question 9: (1 point)
[4.6.2aPT]Find the effective rate of interest for 6% compounded monthly. V‘ (1+°—i3§)”—1 ' .o; )‘1__‘
[j (1+9%§‘2 Q:(l*ﬁ'
U (1 + 0.06)12 — 1
c: (1 +0.06)12 Question 10: (1 point)
[4.6.2bPT]How many years will it take for an investment of $20,000
to grow to $50,000? Assume a rate of interest of £196 cOmpoundedﬁ’ continuously. A»: Fifi" ——> 50K?” ’3 “20 1000 .Q.("5
mg) I3) 4:
D ln(‘l+0.13) 50 £02 = may. ,
[j 1’53). =9 In  0‘13 ,DOt ___ cam c — U 0.1lgl5n2 1*)“ gﬂnt t, Mg \/ ln(5) V
I O—JZB— >ln 56:. ./:;t /7 45 Question 11: (1 point d5 N5
[4.6.2cPTIHow many years will it take $30,000 to grow to $40,000 if it is in ested at 8% compounded monthly? In“ —3m:r A”? t.
 A : Par 4rd
W) 35,000 =. 40,0002, [4.6.2dPT]What interest rate, compounded continuously, will take an
initial investment of $10,000 to $35,000 in 4 years? " 5 4 3 006‘“ r 6
m 9.51 *9 70% mom? I
' 1:35 I ‘1,— 5— (n (Med)
0 411110 ’ £2ln£r _ In L6 ; Q.
C ln35 :9) ﬂ (0 »—’7 I 55,
40 r“ '__ 5 6 5 rs :
Question 13: (1 point) ’9 l” Ta Ll ) r
[4.6.2ePT1What interest rate will triple an initial investment in 6 years if compounded annual] ? :6
U 3%+1 ‘55 3y“; JPN???) «E 173% $333104» F)‘
5‘ 33...] a: i z
D (§)%_1 ~.:)?:.'lg3%"l+r :15; 3% l r Question 14: (1 point) I. I 7 l
[4.6.2bPT]How long will it take money to double if ip‘vi‘e‘inyested at compounded continuously? /> ‘2 P : P g (elm: n1 3 JP
[1 Indian) 3%) :ﬁ :7 O? : Q
U 0.111n2 6,1)t) Int : M In 2’.an = o a (new lnc
lnl:(.ll)(t)
z) .1! J;
M:
% J6"; if ...
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This note was uploaded on 05/23/2011 for the course MAC 1147 taught by Professor Nuegyen during the Spring '11 term at FSU.
 Spring '11
 Nuegyen

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