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(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