u would QL You willdeposit $10,000 at 10% for 6 years, and then move the army an

Question

u would QL You willdeposit $10,000 at 10% for 6 years, and then move the army ant yo receive to an investment account at 8% have at the end of the entire period of 9 years? for another 3 years. How much money would you Q4. If you deposit toda should you invest the money in order to earn $10,000 you invest the money in order tocarn teaming 8% compound interest for how long Q5- If you deposit today $6,756.76 in an account for 6 years and at the end accumulate $10,000, how much compound interest should you earn?

Explanation / Answer

a) Amount received at end of term = Amount deposited * ( 1+ interest rate1)6 * ( 1+ interest rate2)3 =
10000* (1.1)6 *(1.08)3 = 22316.57

b) To calculate time period
Amount = Principal * ( 1+ interest rate )t
10000 = 6302 * ( 1+ 8%)t
t = log(10000/6302)/ log (1.08)
t = 5.99 or 6 years

c)To calculate compund interest
Amount = Principal * ( 1+ interest rate )t
10,000 = 6756.76 * ( 1+ interest rate)6
interest rate = ( 10000/6756.76)1/6 - 1 = 0.067522 or 6.7522%

Best of Luck. God Bless

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