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Unformatted text preview: compound interest. During the first 4 years, the account earns 6%. During the next 4 years, the account earns 5%. During the last 2 years, the account earns 3%. Sarah invests 1000 for a period of 10 years in an account earning compound interest. Sarah’s interest rate is level for all 10 years. At the end of 10 years, Dan and Sarah have the same amount in their investment account. Determine the level annual interest rate earned by Sarah. 24. Jacob invests 1000 in an account earning simple interest of 4%. Cassie invests X in an account earning 2% compounded annually. In year Y, Cassie and Jacob earn the same annual effective interest rate. At the end of year Y, the amount of money in Cassie’s account is equal to the amount of money in Jacob’s account. Determine X. Answer: 19. a. 412.32 b. 8932.94 20. 7.7217% 21. 9.584 years 22. 11th year 23. 4.9942% 24. 1219.06...
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 Spring '08
 Staff
 Math, Effective Interest Rate, bank account

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