Date: April 11, 2018 Score: I. An amount 8000 is invested in an account at an ef

Question

Date: April 11, 2018 Score: I. An amount 8000 is invested in an account at an effective annual interest rate of 7%. Find the amount in the account after 15 years. 2. Smith wishes to invest an amount X in an account having an effective annual interest rate of 5.4% so that he will have 75,000 in the account at the end of five years. Find X. An amount 3000 is invested in an account at a simple annual interest rate of 4%. Find the amount in the account after 5 years. 3 4. An account has a compound discount rate of 8%. if it has a value of 5000 at tirne t-3. Find the present value of the account 5. An account accrues interest with 2(12) = 0.10. 25,000 is invested on Jan. 1, 2007 Find the value of the account on July 1, 2009. 6. An account accrues interest with force of interest ?" or 1000 is invested at tome t 0. Find the value of the account at timet 2. ob

Explanation / Answer

1) Solution: 22,072.25

Working:

8000 * (1 + 7/100)^15

8000 * 1.07^15

22,072.25

2) Solution: 57,658

Working:

75000 = P ( 1+5.4/100)^575,000 = P * 1.054^5

75,000 / 1.300777 = P

P = 57,658

3) Solution: 3,600

Working: 3000 * 4/100 * 5 = 600

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