Question 177215: Question 1-- Use contionous Interest Formula to find indicated value.
P=8,000
R=7.23%
T= 7years
Solve this for A
Ouestion 2-- A company pays 4% compound semiannually. You want to have 24,000 in the future. How much should you deposit now to have the 24,000 5 years from now.
Ouestion 3-- How much will 9,000 be worth 18years if it is investee at 7.5% compounded quartely.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Question 1-- Use contionous Interest Formula to find indicated value.
P=8,000
R=7.23%
T= 7years
Solve this for A
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A(t) = P*e^(rt)
A(7) = 8000*e^(0.0723*7)
A(7) = $13,270.47
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Ouestion 2-- A company pays 4% compound semiannually. You want to have 24,000 in the future. How much should you deposit now to have the 24,000 5 years from now.
A(t) = P(1+(r/n))^(nt)
24000 = P(1 + (0.04/2))^(2*5)
24000 = P(1.02)^10
P = 24000/1.02^10
P = $19688.36
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Ouestion 3-- How much will 9,000 be worth 18years if it is invested at 7.5% compounded quarterly.
A(18) = 9000(1+(0.075/4))^(4*18)
A(18) = 9000*(1.01875)^(72)
A(18) = $34285.56
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Cheers,
Stan H.
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