(1). Find the future value, using the future value formula and a calculator. (Ro
ID: 2983276 • Letter: #
Question
(1). Find the future value, using the future value formula and a calculator. (Round your answer to the nearest cent. $42.67 at 4.5% compounded daily for 5 years
(2) Find the total amount that must be repaid on the following note described. $8,533 borrowed at 15.5% simple interest What is the total amount to be repaid 3 years, 125 days later? (Round your answer to the nearest cent.)
(3). How much would you have in 8 years if you purchased a $1,000 8-year savings certificate that paid 3% compounded quarterly? (Round your answer to the nearest cent.)
Explanation / Answer
(1)
FV=42.67(1+0.045/365)^(365*5) = 53.436
(2)
Convertind day to year = 125/365 = 0.3425 year
Time = 3+0.3425 = 3.0.3425
Amount =8533+ (8533*0.155*3.3425) =12953.84
(3)
Sving = 1000*(1+0.03/4)^4*8 =8242.714
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