I had asked on these problems previously but here is my final answers are they correct now...
Problem #1
Find the simple interest assume a 360-day year. Round result $17000 at 9%for 119 days.
My answer: 504.90
Problem #2
Find compund amount for the deposit. Round to the nearest hundredth $1100 at 6% compounded quarterly for 2years.
my answer. $1,239.14
Problem #3
Find the amount that should be invested now to accumulate $9000 at 6%compounded semiannually for 10years
My anwer:$4,983.08
1) No, you did not treat time as 119/360, you rounded. O get something else.
others correct
Problem #1: Find the simple interest, assuming a 360-day year. The formula for simple interest is given by:
Simple Interest = Principal * Interest Rate * Time
In this case, the principal is $17,000, the interest rate is 9%, and the time is 119 days.
To convert the time from days to a portion of a year, we divide 119 by 360:
Time = 119/360
Now, let's plug in the values into the formula:
Simple Interest = $17,000 * 0.09 * (119/360)
Calculating this, we get the answer:
Simple Interest = $504.86 (rounded to the nearest cent)
Therefore, your answer of $504.90 is very close, but slightly rounded incorrectly.
Problem #2: Find the compound amount for the deposit, rounded to the nearest hundredth. The formula for compound interest is given by:
Compound Amount = Principal * (1 + Interest Rate/Number of Compounding Periods)^(Number of Compounding Periods * Time)
In this case, the principal is $1,100, the interest rate is 6%, the number of compounding periods is 4 (quarterly), and the time is 2 years.
Let's plug in the values into the formula:
Compound Amount = $1,100 * (1 + 0.06/4)^(4 * 2)
Calculating this, we get the answer:
Compound Amount = $1,239.14
Therefore, your answer of $1,239.14 is correct.
Problem #3: Find the amount that should be invested now to accumulate $9,000, compounded semiannually for 10 years. The formula for compound interest is the same as in problem #2.
To find the present value, we rearrange the formula:
Principal = Compound Amount / (1 + Interest Rate/Number of Compounding Periods)^(Number of Compounding Periods * Time)
In this case, the compound amount is $9,000, the interest rate is 6%, the number of compounding periods is 2 (semiannually), and the time is 10 years.
Let's plug in the values into the formula:
Principal = $9,000 / (1 + 0.06/2)^(2 * 10)
Calculating this, we get the answer:
Principal = $4,983.07 (rounded to the nearest cent)
Therefore, your answer of $4,983.08 is correct.