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- An investment is represented by the equation A(t)=10,250(1+ 0.04/12)120 How many years has the account been accumulating interest?Find the following: a. interest rate per conversion period b. future amount c. compound interest d. conversion period per year e. total number of conversion periodFor the following exercise, use the compound interest formula, A(t) = P 1 + r n nt , where money is measured in dollars.After a certain number of years, the value of an investment account is represented by the expression 10,950 1 + 0.03 2 24 . How many years had the account been accumulating interest? yr
- For the following investment, find the total number of compounding periods and the interest rate per period. Do not enter the percent symbol in your answer. Term of Nominal Interest Compounding Rate per Investment (Annual) Rate (%) Compounded Periods Period (%) 11 years 24 monthly %Assume that at the beginning of the year, you purchase an investment for $6,500 that pays $95 annual income. Also assume the investment's value has increased to $7,050 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.You invest $94.1, and your investment account shows $107.9 at the end of year one, $97.9 at the end of year two, and $107.1 at the end of year three. Calculate the Annual Holding Period Return (HPR) over the full period.
- An investment accumulates at a force of interest δt = 0.01t / (3 + 0.01t^2) . Find the present value at time t = 0 of $3,900 due at the end of 7.5 year.Example 1. Compound interest When interest is compounded continuously, the rate of change of the amount x of the investment is proportional to the amount present. In this case, the proportionality constant is the annual interest rate r (as a decimal); that is, dx/dt = rx. (a) If $2000 is invested at 8%, compounded continuously, find an equation for the future value of the investment as a function of time t, in years. (b) How long will it take for the investment to double? (c) What will be the future value of this investment after 35 years?A passbook savings account has a rate of 8%. Find the effective annual yield, rounded to the nearest tenth of a percent, if the interest is compounded 1000 times per year. Click the icon to view some finance formulas. The effective annual yield is %. (Round to the nearest tenth as needed.)
- Find the following: a. total number of conversion period b. conversion period per year c. interest rate per conversion period d. principal e. compound interestTwo accounts each begin with a deposit of $7000. Both accounts have rates of 6.5%, but one account compounds interest once a year while the other account compounds interest continuously. Make a table that shows the amount in each account and the interest earned after one year, five years, ten years, and 20 years. iClick the icon to view some finance formulas. 1 year 5 years 10 years 20 years Compounded annually Interest $ $ Balance $ $ $ $ $ $ (Round to the nearest dollar as needed.) Compounded continuously Balance Interest $ $Parents wish to have $150,000 available for a child's education. If the child is now 8 years old, how much money must be set aside at 3% compounded semiannually to meet their financial goal when the child is 18? Click the icon to view some finance formulas. The amount that should be set aside is $ (Round up to the nearest dollar.) ...