+0  
 
0
789
2
avatar+4609 

 

3. Suppose you wish to have $20,000 in your account at the end of six years.  The account pays annual interest of 3% compounded quarterly.  How much money will you need to invest in the account now?

 

and 

 

 

4. 

  1. An amount of $16,000 is invested at an interest rate of 3% per annum, compounded annually.  Find the amount of compound interest earned after two years.

 

 

and    

 

 

  1. An amount of $30,000 is invested at an interest rate of 5% per annum, compounded annually.  Find the amount of compound interest earned after four years.
 Jan 22, 2017
 #1
avatar+128407 
0

3. Suppose you wish to have $20,000 in your account at the end of six years.  The account pays annual interest of 3% compounded quarterly.  How much money will you need to invest in the account now?

 

20000 = A (1 + .03/4)^(6 * 4)   divide both sides by  (1 + .03/4)^(6 * 4)

 

20000 / (1 + .03/4)^(6 * 4)  = A  ≈  $ 16,716.63

 

 

cool cool cool

 Jan 22, 2017
 #2
avatar+816 
0

Can you solve the rest @cphil? Your doing great!

 Jan 22, 2017

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