Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

it\'s about Compound Interest Future Value 1-Raymond deposited his $1,000 bonus

ID: 2713320 • Letter: I

Question

it's about Compound Interest Future Value

1-Raymond deposited his $1,000 bonus into an account paying 5.2% compounded semiannually. How much money will he have at the end of 7 years?

2-Stacy is going on a vacation to Europe at the end of 2 years. She deposits $6,141 in an account earning 4% interest compounded semiannually. How much money will Stacy have in he account for her trip?

3-Dan deposits $5,500 into a Certificate of Deposit (CD) paying 2.5% interest compounded quarterly. How much money will be in his account at the end of 17 years?

4-William deposited $7,000 into an account paying 7.7% compounded quarterly. Calculate how much money will be in the account at the end of 7 years.

5-Josh deposits $3,000 into an account paying 4% interest compounded monthly. What will the account be worth at the end of 23 years?

6-Jamie won $750 in a raffle at school. After donating $50 to charity, he deposited the remaining amount into an account paying 5% interest compounded quarterly. How much will the account be worth at the end of 15 years?

7-Mark deposited $5000 into an account paying 9% interest compounded monthly. How much money will he have at the end of 20 years?

8-Gary received a bonus of $8,000. He gave his son $720 and invested the remaining amount into a savings account earning 3% interest compounded quarterly. If he leaves the money in the account for 5 years, how much money will be in the account?

9-Curtis is 19 and wants to start saving money for retirement. He deposited $8,000 in an account earning 6% interest compounded semiannually. At the end of 50 years, how much will he have in the account for his retirement?

10-Franella wants to buy her dream car when she retires in 14 years. She deposits $20,000 in an account paying 8.4% interest compounded monthly. How much will she have to put towards her dream car at the end of 14 years?

Explanation / Answer

1-Raymond deposited his $1,000 bonus into an account paying 5.2% compounded semiannually. How much money will he have at the end of 7 years?

Amount at the end of 7 years = Amount deposited*(1+r/2)^2n

Amount at the end of 7 years = 1000*(1+5.2%/2)^(2*7)

Amount at the end of 7 years = $ 1432.40

2-Stacy is going on a vacation to Europe at the end of 2 years. She deposits $6,141 in an account earning 4% interest compounded semiannually. How much money will Stacy have in he account for her trip?

Amount will Stacy have in he account for her trip = Amount deposited*(1+r/2)^2n

Amount will Stacy have in he account for her trip = 6141*(1+4%/2)^(2*2)

Amount will Stacy have in he account for her trip = 6647.22

3-Dan deposits $5,500 into a Certificate of Deposit (CD) paying 2.5% interest compounded quarterly. How much money will be in his account at the end of 17 years?

Money will be in his account at the end of 17 years = Amount deposited*(1+r/4)^4n

Money will be in his account at the end of 17 years =5500*(1+2.5%/4)^(4*17)

Money will be in his account at the end of 17 years = 8401.63

4-William deposited $7,000 into an account paying 7.7% compounded quarterly. Calculate how much money will be in the account at the end of 7 years.

Money will be in his account at the end of 7 years = Amount deposited*(1+r/4)^4n

Money will be in his account at the end of 7 years =7000*(1+7.7%/4)^(4*7)

Money will be in his account at the end of 7 years = 11,938.73

Note : Please dont ask multiple question in single question, please ask seperately