SOLUTION: Answer the following questions, based on an account that earn 2.8% interest, compounded quarterly.
a. How much will the account be worth if you invest $500 for 3 years?
b. What i
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Question 920469: Answer the following questions, based on an account that earn 2.8% interest, compounded quarterly.
a. How much will the account be worth if you invest $500 for 3 years?
b. What is the APY of this account?
c. How much should you invest now in order to have an account valve of $25,000 in 15 years?
d. How long will it take $2000 to triple in value?
Answer by ewatrrr(24785) (Show Source): You can put this solution on YOUR website!
In General
A = Accumulated Amount
P= principal =
r= annual rate = .
n= periods per year =
t= years =
A = 500(1.004)^(12)
....
P = 25000/(1.004)^(60)
.......
log(3)/4log(1.004) = t
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