Question

asked 2021-05-17

You want to invest money for your child's education in a certificate of deposit (CD). You want it to be worth \($12,000\) in 10 years. How much should you invest if the CD pays interest at a \(9\%\) annual rate compounded

a) Annually?

b) Continuously?

a) Annually?

b) Continuously?

asked 2021-05-25

What are the future value and the interest earned if \($3000\) is invested for 6 years at \(8\%\) compounded quarterly?

asked 2021-05-11

Bethany needs to borrow \($10,000.\) She can borrow the money at \(5.5\%\) simple interest for 4 yr or she can borrow at \(5\%\) with interest compounded continuously for 4 yr.

a) How much total interest would Bethany pay at \(5.5\%\) simple interest?

b) How much total interest would Bethany pay at \(5%\) interest compounded continuously?

c) Which option results in less total interest?

a) How much total interest would Bethany pay at \(5.5\%\) simple interest?

b) How much total interest would Bethany pay at \(5%\) interest compounded continuously?

c) Which option results in less total interest?

asked 2021-06-07

If $25,000 is invested for 15 years compounded quarterly and grows to $52,680. Find the interest rate to the nearest percent.