1. Jan Cain deposited $19,500 in the bank on 1/1/1995, at an investment rate of
ID: 2350786 • Letter: 1
Question
1. Jan Cain deposited $19,500 in the bank on 1/1/1995, at an investment rate of 12% compounded annually. How much has accumulated in the account by 1/1/2012.2. Mark Schultz deposited $43,200 in the bank on 1/1/2002. On 1/2/2012, this deposit accumulated to $84,974. Interest is compounded annually on the account. What rate of interest did Mark earn on the deposit?
3. Les Hinckle made a deposit in the bank on 1/1/2005. The bank pays interest at the rate of 8% compounded annually. On 1/1/2012, the deposit has accumulated to $30,000. How much did Les originally deposit on 1/1/2005?
4. Vale Hooper deposited $11,600 in the bank on 1/1 a few years ago. The bank pays an interest rate of 10% compounded annually, and the deposit is now worth $30,052. For how many years has the deposit been invested?
Explanation / Answer
Jan Cain deposited $19,500 in the bank on 1/1/1995, at an investment rate of 12% compounded annually. How much has accumulated in the account by 1/1/2012. (19,500)*(1.12)^17 = 133,887.80 Mark Schultz deposited $43,200 in the bank on 1/1/2002. On 1/2/2012, this deposit accumulated to $84,974. Interest is compounded annually on the account. What rate of interest did Mark earn on the deposit? 10th root of (89,974/43,200) = 1.0761. Rate = 7.61% Les Hinckle made a deposit in the bank on 1/1/2005. The bank pays interest at the rate of 8% compounded annually. On 1/1/2012, the deposit has accumulated to $30,000. How much did Les originally deposit on 1/1/2005? 30,000/(1.08)^7 = 17,504.71 Vale Hooper deposited $11,600 in the bank on 1/1 a few years ago. The bank pays an interest rate of 10% compounded annually, and the deposit is now worth $30,052. For how many years has the deposit been invested? 11,600*1.10^X = 30,052 1.10^X = (30,052/11,600) X = Log base 1.1 (30,052/11,600) Answer: 10 years
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