Have to be invested for it to grow to 197202 in 14

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have to be invested for it to grow to $1,972.02 in 14 years? A = P(1 + r/n)tn. A=$1,972.02; P= $510; r= ?; t=14 years; n=1. 1,972.02= 510(1+r/1)(14x1).Divide both sides by $510. 3.8667= (1+r/1)(14).To get rid of the 14thpower, multiple each side by 1/14.(3.91346)1/14= [(1+r/1)(14)]1/14.1.1014 = 1+ r/1. Subtract 1 from each side.0.1014 = r/1. Multiple both sides by 1. R= 0.1014 =10.14%
6 [present value] What is the present value of $500 to be received 12 years from
7 [solving for i] Kirk VanHouten, who has been married for 23years, would like tobuy his wife an expensive diamond ring with a platinum setting on their30-yearwedding anniversary. Assume that the cost of the ring will be $12,500in 7years.Kirk currently has $4,468to invest. What annual rate of return must Kirk earn on hisinvestment to accumulate enough money to pay for thering? A = P(1 + r/n)tn.
8 [solving for i] You are considering investing in a security that will pay you $2,000in 30years.
9 [solving for n] Jack asked Jill to marryhim, and she has accepted under onecondition: Jack must buy her a new $350,000Rolls-Royce Phantom. Jack currentlyhas $45,310that he may invest. He has found a mutual fund with an expectedannual return of 5percent in which he will place the money. How long will it takeJack to win

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Term
Fall
Professor
FAROOQI

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