1) Jeff\'s bank offers a 36-month Certificate of Deposit (CD) with an APR of 2.5

Question

1) Jeff's bank offers a 36-month Certificate of Deposit (CD) with an APR of 2.5%. If P = 4000 what is A(8)? (Round your answer to two decimal places.)

2) Jeff's bank offers a 36-month Certificate of Deposit (CD) with an APR of 2.75%.What principal P should be invested so that the account balance is $3500 in three years? (Assume the interest is compounded monthly. Round your answer to two decimal places.)

3a) A finance company offers a promotion on $5000 loans. The borrower does not have to make any payments for the first four years, however interest will continue to be charged to the loan at 29.6% compounded continuously. What amount will be due at the end of the four year period, assuming no payments are made? (Round your answer to the nearest cent.)
3b) If the promotion is extended an additional three years, and no payments are made, what amount would be due? (Round your answer to the nearest cent.)

4) The current i measured in amps in a certain electronic circuit with a constant impressed voltage of 120 volts is given by

i(t) = 3 2e13t where t 0

is the number of seconds after the circuit is switched on. Determine the value of i as

t .

(This is called thesteady state current.)

i got these worng on my test and my teacher is refusing to go over them in class and i need to know what i did worng can anyone help me out these problems...thanks

Explanation / Answer

1)Amount at the end of 8 months= Principal(1+r/12)^8                                                                  =4000*(1+(0.025/12))^8 4067.15 2)Formula to find end of the term amount given a principal Amount=Principal(1+i)^n Principal is the amount invested i= annual interest rate;n=no.of compounding periods Here,we have, Amount=3500 ; Annual Percentage Rate(APR)= 2.75% ie. 0.0275/12=0.00292 monthly No.of compounding periods= 3 years*12 months/yr.= 36 months Substituting in the formula, 3500=P(1+0.002292)^36 Solving in an online equation solver, we get P= 3223.11 (Principal to be invested) 3 a)Formula to find the amount under continuous compounding A=P*e^(rt) A= Amount at the end of the period; P= Principal; e= 2.718 (a mathematical constant assumed as a Napier constant ; r=Rate of interest- 0.296 ; t= time period =4 years Substituting, we get, A= 5000*2.718^(0.296*4) 16335.08 Or, solving in an online/financial with e, (No need to give value)we get, A= 16337.09 3b)A= 5000*2.718^(0.296*7) 39694.91 Or, solving in an online/financial with e, (No need to give value)we get, A=39703.44

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