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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. Sarahs 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 Cassies account is equal to the amount of money in Jacobs 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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This note was uploaded on 02/04/2012 for the course MA 373 taught by Professor Staff during the Spring '08 term at Purdue University-West Lafayette.
- Spring '08