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.

Guest Feb 13, 2021

#1**+2 **

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

#1**+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