Determine the accrued interest and the final amount of a $10,000 investment with a 4.75% simple interest rate over a period of 13 years. Round the answers to two decimal places as needed.
The accrued interest is $____ and the final amount of the investment is $____.
The formula to calculate simple interest is:
I = P * r * t
Where:
I is the accrued interest
P is the principal investment amount
r is the interest rate
t is the time in years
Using this formula, we can calculate the accrued interest:
I = 10000 * 0.0475 * 13
I ≈ 6162.50
Rounding to two decimal places, the accrued interest is $6,162.50.
To calculate the final amount of the investment, we add the accrued interest to the principal:
Final amount = Principal + Accrued interest
Final amount = 10000 + 6162.50
Final amount ≈ 16162.50
Rounding to two decimal places, the final amount of the investment is $16,162.50.
Chris invests $15,000 in a retirement account with an annual interest rate of 3.4%. Find the final amount of the investment after 27 years if interest is compounded quarterly. Round the answer to the nearest cent.
The final amount of the investment after 27 years is $____
The formula to calculate compound interest is:
A = P * (1 + (r / n))^(n * t)
Where:
A is the final amount
P is the principal investment amount
r is the annual interest rate
n is the number of times interest is compounded per year
t is the time in years
Using this formula, we can calculate the final amount:
A = 15000 * (1 + (0.034 / 4))^(4 * 27)
A ≈ 15000 * (1 + 0.0085)^(108)
A ≈ 15000 * (1.0085)^(108)
A ≈ 15000 * 1.9623307635
Rounding to the nearest cent, the final amount of the investment after 27 years is $29,434.96.
Kris is looking to purchase a $599 laptop. They have $350 in cash, a $100 gift card, and a credit card with an $800 limit. Identify the payment method that can cover the cost of the new laptop.
Method 1: cash
Method 2: gift card
Method 3: credit card
The payment method that can cover the cost of the new laptop is payment Method _.
Method 2: gift card
The total value of the cash and the gift card is $350 + $100 = $450, which is less than the cost of the laptop ($599). Therefore, the only payment method that can cover the cost of the laptop is the gift card.
Dallas needs a new refrigerator that costs $799. Which of the following payment methods should Dallas use to pay for the refrigerator? Dallas wants to make sure there are sufficient funds to cover the purchases and minimize the interest, if any, that will be needed to pay for the purchases. Method 1: He should use the debit card with a $600 balance. Method 2: He should use the credit card with a $1,000 credit limit and a potential 5% interest on the purchases if the amount is not paid in full by the statement’s due date. Method 3: He should use a $799 payday loan with 7% interest.
To ensure that there are sufficient funds and to minimize potential interest, Dallas should use payment Method ____ to make the purchase.
Dallas should use payment Method 1: He should use the debit card with a $600 balance.
Using the debit card with a $600 balance ensures that he has sufficient funds to cover the purchase of the refrigerator. By using the debit card, there will be no interest charges or additional fees associated with the purchase. This option minimizes the potential for interest payments and any additional financial obligations.
Christian has been saving $170 monthly for college. The investment account set up for him has a 3.75% annual interest rate, compounded monthly. If Christian invests $170 monthly over a 4-year period, he will have a total amount of $8,816.47. On average, the annual cost of a 2-year public institution in the 2020-2021 academic year is $3,900. Would this be enough for Christian to cover the cost of 2 years at a 2-year public institution? If Christian were to save the money without gaining any interest, approximately how long would it take him to reach $8,816.47? (1 point) Responses Yes, $8,816.49 is enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian the same 4 years to save up $8,816.47. Yes, $8,816.49 is enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian the same 4 years to save up $8,816.47. No, $8,816.49 is not enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian approximately 4 years and 4 months to save up $8,816.47. No, $8,816.49 is not enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian approximately 4 years and 4 months to save up $8,816.47. No, $8,816.49 is not enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian the same 4 years to save up $8,81
No, $8,816.49 is not enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian the same 4 years to save up $8,816.47
Alvin wants to become a hairdresser. He can save $250 a month for two years, and his family has promised to help him with the rest. His training will cost $9,500. How much will his family have to pay?
$____