math

posted by .

The Investment Problem. Suppose that Rod invests \$1,000 at 6% compounded daily and Sheila invests \$1,000 at 7% (per year) simple interest. In how many years will Rod’s investment be worth more than Sheila’s investment? Complete the following table to answer your question (the amounts for the first 2 years are given; you may not have to do all 10 years):
Year 6% compounded daily 7% simple
1 \$1,061.83 \$1,070.00
2 \$1,127.49 \$1,140.00
3
4
5
6
7
8
9
10

• math -

You didn't give the table. You can't copy and paste; you must type it in.

• math -

Here is the table:
Year 6% Compounded daily 7% simple
1 \$1,061.83 \$1,070.00
2 \$1,127.49 \$1,140.00
3
4
5
6
7
8
9
10

• math -

For 6% compounded daily, do this.
[(0.06/365)+ 1]^365 = 1.06183 and that x 1000 = \$1061.83 for year 1.
For year 2, just take 1061.83*1.06183 = \$1127.49.
For year 3, it will be 1127.49 x 1.06183 = ?? etc.

For 7% simple,
For year 1 it is \$1,000 x 0.07 = 70.00 and 1,000 + 70.00 = \$1070.00
For year 2 it is 1070.00 x 0.07 = 74.90 and 1,070.00 + 70.90 = 1,140.90. etc.

Similar Questions

1. Algebra

Greta invests \$10,000 in an investment that pays 3% interest, compounded annually, for the first three years, then 9% interest, compounded annually, for the last three years. Rui invests \$10,000 in an investment that pays r% for all …
2. math

Tamara invests \$30,000 in an account earning 7% interest per year over the next 4 years. How much (simple) interest will her investment earn in total?
3. maths

Tamara invests \$30,000 in an account earning 7% interest per year over the next 4 years. How much (simple) interest will her investment earn in total?
4. S.P

Tamara invests \$30,000 in an account earning 7% interest per year over the next 4 years. How much (simple) interest will her investment earn in total?
5. MAAAATTTTHHHHHH

Franco invests some money at 6.9%/a compounded annually and David invests some money at 6.9%/a compounded monthly. After 30 years, each investment is worth \$25 000. Who made the greater original investment and by how much?
6. math

Anny invests \$3,000, at 6% interest, compounded monthly for 1 year. Use Table 11-1 to calculate the compound amount for her investment.
7. investing

Lily invests \$4,000, at 6% interest, compounded quarterly for 5 years. Calculate the compound interest for her investment by using Table 11-1.