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.

Respond to this Question

First Name
School Subject
Your Answer

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.
  8. business 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
  9. Algebra 1

    An investment grows according to the exponential equation y = 15,000 · 1.07x, where x is the number of years invested. Which of the following statements is true?
  10. Algebra

    An investment grows according to the exponential equation y = 15,000 · 1.07x, where x is the number of years invested. Which of the following statements is true?

More Similar Questions