SOLUTION: Please help! I have worked on this challenge problem non stop for a while and I can not get a solution! The assignment is due on the 8th of December and I must acquire a Solution p
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Question 1059835: Please help! I have worked on this challenge problem non stop for a while and I can not get a solution! The assignment is due on the 8th of December and I must acquire a Solution please!
Link: https://www.scribd.com/document/333074965/Challenge-Problem-4
Here’s the problem:
You save money in the following way:
• Jan 1, 2000: Deposit an unknown amount of money into a new account A with an APR of 3% compounded quarterly.
• Jan 1, 2005: Withdraw all your money from account A and deposit it and an additional $5,000 into a new account B with an APR of 5.5% compounded continuously.
• Jan 1, 2012: Account B has a balance of $10,078.46.
Answer the following questions:
1. What was the amount you deposited into account A on Jan 1, 2000?
2. What was the earliest date (day, month, and year) when you could have withdrawn $9,000?
I won't do it for you for that would be totally dishonest, but I'll
be a little bit dishonest. This is what you must solve for P
to get the answer to the first part.
To get the answer to the second part, substitute what you
get for P in the blank below, replace the 7 by T, and put
9000 on the right side, and solve for T. That is, fill in the
blank with what you got for P above in this:
The whole part of the number you get for T is the number of full
years after Jan 1, 2005. The decimal part is the fraction of the
next year after that.
Multiply that decimal part by 365.25 to get the number of days into
that next year that the amount was $9000. Then use the number of
days in the various months to find out just what date that was.
Luck to you!
Edwin