Posted by **tina** on Sunday, February 12, 2012 at 1:08am.

Jim opened an account with $400. The account pays three percent quarterly. How much is in the account at the end of two years? Round to the nearest dollar. (Points : 1)

5. Use this table to answer questions 5 through 8.

Principal Rate Compounded Time Final Amount

$10,000 2% daily 5 y A

$10,000 2% quarterly 5 y B

$10,000 3% semiannually 10 y C

$10,000 3% quarterly 10 y D

Calculate A. Round to the nearest dollar.

(Points : 1)

6. Calculate B. Round to the nearest dollar. (Points : 1)

7. Calculate C. Round your answer to the nearest dollar. (Points : 1)

8. Calculate D. Round your answer to the nearest dollar. (Points : 1)

- consumer math -
**Henry**, Sunday, February 12, 2012 at 6:39pm
Pt = 400(1+r)^n.

r = (3%/4) / 100% = 0.0075 = Quarterly

% rate expressed as a decimal.

n = 4comp periods/yr * 2yrs = 8 Compounding periods.

Pt = 400(1.0075)^8 = $425.

- consumer math -
**Henry**, Monday, February 13, 2012 at 9:55am
5. $10,000 @ 2%, Daily, 5yrs.

Pt = Po(1+r)^n.

r = (2%/365) / 100% = 0.00005479. = Daily % rate expressed as a decimal.

n = 360 comp/yr * 5yrs = 1800 = The number of compounding periods.

Pt = 10000(1.00005479)^1800 = $11,037.

6. $10,000 @ 2%, Q, 5yrs.

r = (2%/4) / 100% = 0.005.

n = 4comp/yr * 5yrs = 20 comp. periods.

Pt = 10000(1.005)^20 = $11,049.

7. $10,000 @ 3%, Semi-ann, 10yrs.

Pt = Po(1+r)^n.

r = (3%/2) / 100% = 0.015 = Semi-annual

% rate expressed as a decimal.

n = 2comp/yr * 10yrs=20 Comp. periods.

Pt = 10000(1.015)^20 = $13,469.

8. Same procedure as 6.

## Answer This Question

## Related Questions

- consumer math - Jim opened an account with $400. The account pays three percent ...
- math - Jim opened an account with $400. The account pays three percent quarterly...
- Consumer math - When Greg was born, his grandmother put $5000 in a savings ...
- Math help - You plan to make 24 equal quarterly payments (payments are at the ...
- Math - You plan to make 24 equal quarterly payments (payments are at the end of ...
- math - Juanita Finn deposits $12,000 into an account at Valley Bank that pays 8...
- math - Phillip opened a savings account with an annual interest rate of 8% and ...
- math - Kelly opened a savings account with $500 she received at 8th grade ...
- math - Frank opened a savings account with $700 at 4.5 percent interest, ...
- Interest - Jim opens a savings account with a deposit of $10,000. If the account...

More Related Questions