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a) Find the balance of the investment if $1000 is compounded annually, at 5%/a, for 20 years.

 

b). Tiffany deposits $9000 in an account that pays 10%/a, compounded quarterly. After three years, the interest rate changes to 9%/a, compounded semi-annually. Calculate the value of her investment two years after this change.

 

c). On the day Sarah was born, her grandparents deposited $500 in a savings account that earns 4.8%/a, compounded monthly. They deposited the same amount on her 5th, 10th and 15th birthdays. Determine the balance in the account on Sarah’s 18th birthday.

 Feb 13, 2021

Best Answer 

 #1
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a)  1000(1 + .05) 20

 

b)  9000 ( 1 + .1/4)12  = ..........     use this value in the second part

              value * (1 + .09/2)4 =  final amount

 

c )  this is really  four results that you add together

        500 ( 1 + .048/12)12*18    +

            500 ( 1 + .048/12)13*12    +

                500 (1 + .048/12)8*12        +

                    500 ( 1+ .048/12)3*12   =   total amount when 18 y/o

 Feb 13, 2021
 #1
avatar
+2
Best Answer

a)  1000(1 + .05) 20

 

b)  9000 ( 1 + .1/4)12  = ..........     use this value in the second part

              value * (1 + .09/2)4 =  final amount

 

c )  this is really  four results that you add together

        500 ( 1 + .048/12)12*18    +

            500 ( 1 + .048/12)13*12    +

                500 (1 + .048/12)8*12        +

                    500 ( 1+ .048/12)3*12   =   total amount when 18 y/o

Guest Feb 13, 2021

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