(1 point) If you need $50,000 eight years from now, what is the minimum amount o
ID: 3138651 • Letter: #
Question
(1 point) If you need $50,000 eight years from now, what is the minimum amount of money you need to deposit into a bank account that pays 5% annual interest, compounded (give your answers to the nearest cent) (a) annually? $ (b) monthly?$ (c) daily (assuming 365 days in a year)? $ (1 point) If $7000 is deposited into an account paying a nominal interest rate of 3% per year, how much is in the account 5 years later if interest is compounded (round all answers to the nearest cent, do not write your answers with commas): (a) annually? s (b) continuously? $ (1 point) If 5000 dollars is invested at 4 percent interest, find the value of the investment at the end of 3 years if the interest is compounded: Annually: Monthly: Daily: Continuously:Explanation / Answer
1) amount needed = $ 50000
time = 8 years
rate = 5%
a) annually
50000 = P ( 1 + .05)^8
P = $ 33841.97
b) monthly
50000 = P ( 1+.05/12)^12*8
P = 50000/1.490585
P = $ 33543.88
c) daily
50000 = P ( 1+.05/365 )^8*365
P = 50000/1.49178
P = $ 33517.01
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.