Find the time it takes for $7,300 to double when invested at an annual interest rate of 11%, compounded continuously. years Find the time it takes for $730,000 to double when invested at an annual interest rate of 11%, compounded continuously. years
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- Suppose that $1,000 is invested at 3% interest compounded continuously. Use the formula A = Pert (a) How long (to the nearest day) before the value is $1,250? 3 X years, 23 X days (b) How long (to the nearest day) before the money doubles? 10 X years, days (c) What is the interest rate (compounded continuously and rounded to the nearest tenth of a percent) if the money doubles in 5 years? %*Using Matlab* The current amount A of a principal P invested in a savings account paying an annual interest rate r is given by A = P(1+r/n)^(nt) where n is the number of times per year the interest is compounded. For continuous compounding, A = Pe^(rt). Suppose $10,000 is initially invested at 2.5 percent (r = 0.025). a. Plot A versus t for 0 ≤ t ≤ 20 years for four cases: continuous compounding, annual compounding (n = 1), quarterly compounding (n = 4), and monthly compounding (n = 12). Show all four cases on the same subplot and label each curve. On a second subplot, plot the difference between the amount obtained from continuous compounding and the other three cases. b. Redo part a, but plot A versus t on log-log and semilog plots. Which plot gives a straight line?nt Use the compound interest formulas A = P and A = Pert to solve the problem given. Round answers to the nearest cent. Find the accumulated value of an investment of $20,000 for 7 years at an interest rate of 4.5% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly; d. compounded continuously. a. What is the accumulated value if the money is compounded semiannually? (Round your answer to the nearest cent. Do not include the $ symbol in your answer.) b.What is the accumulated value if the money is compounded quarterly? (Round your answer to the nearest cent. Do not include the $ symbol in your answer.) c. What is the accumulated value if the money is compounded monthly? (Round your answer to the nearest cent. Do not include the $ symbol in your answer.) d. What is the accumulated value if the money is compounded continuously? (Round your answer to the nearest cent. Do not include the $ symbol in your answer.)
- Use the formula A = Pert to find the future value after 20 years of a $7,000 account that earns 8% interest compounded continuously, then compare that to the future value of the same account if interest is compounded annually. Round to the nearest cent. The future value of the account with interest compounded continuously is The future value of the account with interest compounded annually is The account earns $____ (what dollar amount) [more/less] when interest is compounded continuously %24When an initial amount of P dollars is invested at r% annual interest compounded n times per year, the value of the account (4) after years is given by the equation nt A=P(1 + =)** n Write an equation that represents the value in an account that starts out with an initial investment of $5000 and pays 10% interest compound monthly. Then use that equation to fill the table and use the table to graph the equation. Years (1) Value (4) 0 5 10 15 20 oo → KI1. Determine the total amount if P11,500,000 is invested in 2 years, 5 months with interest rate of 13 1/2 %? 2. What is the future value of P33,000,000 in 1 1/4 years with interest rate of 8 1/4 %? 3. How much would be the accumulated amount if P2, 047, 000 is invested in 2 years, 2 months with interest rate of 10 ¾4%? 4. An investor put his money in an investment earning 10 1/2% simple interest rate per annum. If his total investment was P12.30 million, how much money he will receive at the end of 15 months? 5. Fernando invested his P1.57 million for three and half years in an investment having a simple interest of 16%. How much money he will collect after the term?
- 7\ A sum of OMR (160000) is invested at an interest rate compounded continuously. After 9 years the amount has become OMR (224230.34). Find the interest rate. Use this formula: P=P.er.tThe current amount A of a principal P invested in a savings account paying an annual interest rate r is given by A = P(1+r/n)^(rt) where n is the number of times per year the interest is compounded. For continuous compounding, A = Pe^(rt). Suppose $10,000 is initially invested at 2.5 percent (r = 0.025). a. Plot A versus t for 0 ≤ t ≤ 20 years for four cases: continuous compounding, annual compounding (n = 1), quarterly compounding (n = 4), and monthly compounding (n = 12). Show all four cases on the same subplot and label each curve. On a second subplot, plot the difference between the amount obtained from continuous compounding and the other three cases. b. Redo part a, but plot A versus t on log-log and semilog plots. Which plot gives a straight line?Suppose that $1,000 is invested at 6% interest compounded continuously. Use the formula A = Pert. (a) How long (to the nearest day) before the value is $1,250? (answer should be in years, days) (b) How long (to the nearest day) before the money doubles? (answer should be in years, days)
- What interest rate compounded continuosly did a $15000 investment earn if it accumulated to $18000 in 5 year?uestion 1: Solve the following TVM problems using Excel formulas. You MUST use Excel formulas (FV or PV) to receive credit. ou can assume that all payments are made at the beginning of the period and use "1" for the "type" argument in the formula. A. Suppose you invest 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded annually? B. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded quarterly? C. Suppose you invest $ 570 monthly. What is the future value of the investment in 29 29 years, if interest at + 5% is compounded monthly? 5 6 7 8 19 20 21 22 23 24 25 26 27 28 29 Question 1 Question 2 + Ready Accessibility: Investigate MAR 17 A 国 W XAn investment pays $16651.42 today, $20147.83 in 200 days and pays $23051.92 in 300 days at a rate of simple interest is 4.05%. What is the value 160 days from today of the investment?