Ian deposits $1200 into a savings account that earns 4% per year, simple interest. a) Write an equation to relate the amount of the investment, A, to time, t, in years. b) Graph the function. c) How long will it take, to the nearest month, for the investment to grow to $1500?
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Ian deposits $1200 into a savings account that earns 4% per year, simple interest.
a) Write an equation to relate the amount of the investment, A, to time, t, in years.
b) Graph the function.
c) How long will it take, to the nearest month, for the investment to grow to $1500?
Step by step
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- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.You initially invest $400 in a savings account that pays a yearly interest rate of 3%. (a) Write a formula for an exponential function giving the balance in your account as a function of the time since your initial investment. (Let B be the account balance in dollars and t be the number of years since the initial investment.) 8(t)= dollars (b) What monthly interest rate best represents this account? Round your answer to three decimal places. % (c) Calculate the decade growth factor. (Round your answer to two decimal places.) (d) Use the formula you found in part (a) to determine how long it will take for the account to reach $536. (Round your answer to the nearest whole number.) yr Explain how this is consistent with your answer to part (c), At the end of one decade, there will be $ where the account reaches $536 at the end of This --Select-- o the answer found above years,
- Samuel wants to make regular annual payments of size P dollars into an annuity that pays interest of an annual rate of 0.25 or 25%. He wants to have 1.5 times the invested amount in the account after 5 years. A) Determine the size, P of the required annual payment. B) Create a table and do a step by step calculation to verify your answer in part AYou decide to invest $7,500 into an account that pays 1.1% annual compound interest. Write an equation for the balance of the account (B) after t years.Suppose you receive $100 at the end of each year for the next 3 years. a) if the interest rate is 8%, what is the present value of the cash flows? b) what is the future value in 3 years of the present value you compute in a? c) suppose you deposit the cash flows in a bank account that pays 8% interest in a year. What is the balance in the account at the end of each of the nest 3 years (after your deposit is made)? How does the final bank balance compare with your answer in b?
- Joe opens an investment account with an initial deposit of $200. He then sets up monthly deposits of $50 to the account. If the account earns 5.25% interest compounded monthly, how much money will he have in the account in 6 years?Your brother has asked you to help him with choosing an investment. He has $4,500 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 0.0300 annually with the interest being paid quarterly. What will be the value of the investment in two years? Round to two decimal places.Jill wants to make a few deposits so that she can withdraw $5000 per year at the end of each year for the next 15 years. A deposit of X is made a year from now, a second deposit of 2X is made at the end of year 4, and a deposit of (X/2) is made at the end of year 8. What is the amount of X if the goal is to empty the account? Use 6% interest.
- Tom wants to have $50,000 saved sometime in the future. How much must he deposit every month into an account that pays 2.8% interest, compounded monthly. Write the present value function, letting x represent the number of years.The following information relates to the number cases to be solved by using financial functions: If you deposited sum of 200 JOD at the beginning of each month for 20 Years at an annual interest rate of 12%. What are the present and future values of these deposits? If the annual interest rate is 6%, what is the monthly payment to be invested at the beginning of each month for a period of 20 years to save the amount of 100000 JOD? Salem invested 120000 JOD for 10 years and the total value of this investment have reached to 195467 JOD, what is the annual interest rate for this investment. Required: Create a new worksheet “Q2”and formulate it to be suitable then use the necessary financial functions to resolve the previous examples.You plan to deposit $700 in a bank account now and $900 at the end of one year. If the account earns 2% interest per year, what will the balance be in the account right after you make the second deposit? There will be $ in the account right after the second deposit. (Type an integer or a decimal.)