Travis invested $9,250 in an account that pays 6 percent simple interest. How mu

Question

Travis invested $9,250 in an account that pays 6 percent simple interest. How much more could he have earned over a 7-year period if the interest had compounded annually?

2.      What is the future value of $6,200 invested for 23 years at 9.25 percent compounded annually?

3.      You own a classic automobile that is currently valued at $150,000. If the value increases by 6.5 percent annually, how much will the automobile be worth ten years from now?

4.      You just received $225,000 from an insurance settlement. You have decided to set this money aside and invest it for your retirement. Currently, your goal is to retire 25 years from today. How much more will you have in your account on the day you retire if you can earn an average return of 10.5 percent rather than just 8 percent?

5.      What is the present value of $150,000 to be received 10 years from today if the discount rate is 11 percent?

Explanation / Answer

1)

                     4,659

more he have earned over a 7-year period if the interest had compounded annually =4659-3885=774

2).

Future Value=43417+4016=$47433

3).

Automobile be worth of=264385+17185= $281570

4).

more money he can earn is=590625-450000= $140625

5).present value of $150,000 to be received 10 years from today if the discount rate is 11 percent=$52827

Principal Simple Interest 1 9250 6 555 2 9250 6 555 3 9250 6 555 4 9250 6 555 5 9250 6 555 6 9250 6 555 7 9250 6 555 3885 Compounded interest 1 9250 6                         555 2 9805 6                         588 3 10393.3 6                         624 4 11016.9 6                         661 5 11677.91 6                         701 6 12378.59 6                         743 7 13121.3 6                         787

                     4,659

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.