My Solve for x. Give an exact answer: an integer, a fraction, or a decimal that

Question

My Solve for x. Give an exact answer: an integer, a fraction, or a decimal that terminates (Le, 3/8 enter DNE 0.375 ). If an answer does not exist, (5x-8) 22-1 Notes Cathy wants to have $18,000 in cash 6 years from now in order to pay for improvements that must be made to her small office at that time. If Cathy finds a savings account that pays annual interest of 2.7% compounded monthly, then how much should she invest right now in the account in order to have the funds in 6 years? (Round your answer to the nearest cent.) Submit Answer Save Progress 5. -4 points TAMU 2.6.006 My Second National Bank offers an account that earns 4.58% per year, compounded continuously, tf a person invests $10,000 in this account, what will be the value of the account at the end of 11 years? (Round your answer to the nearest cent.) Submit Save Assignment Progress Home My Assignments Extension Request WebAssigne 400 1997-2018 Advanced Instructional Systems, Inc. All nghts reserved

Explanation / Answer

4) Use this as inputs in your financial calculator and calculate PV:

     FV= 18,000

      n=72 (12*6)

      r=0.00225 (0.027/12)

    PMT=0

    Therefore, PV= $15,310.73

5) The questions ask you to calculate FV with continuous compounding:

    FV=10,000*e0.0458*11

            = $ 16,549.98

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