Math

posted by .

Alice requires $10,000 in two years. If the interest rate is 6% and compounded
quarterly, how much must Alice place in the account to have the required amount? (a) $ 6,274.10 (b) $ 8,877.10 (c)$ 8,573.40 (d) $ 5,000.00 (e) $ 10,000.00

  • Math -

    Pt = Po(1+r)^n.

    r = (6% / 4) / 100% = 0.015 = QPR expressed as a decimal.

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

    $10,000 = Po(1.015)^8,
    Po = 10,000 / (1.015)^8 = $8877.11.

  • Math -

    How much compound interest will an account of $12,000 bear after 6 years at 3.2% APR, compounded annually? (Hint: Use the formula for annual compound interest.)

    $2,496.38
    $14,496.38
    $1,896.38
    $496.38

  • Math -

    Question 6
    After a golf ball struck Charl on the head he was awarded an amount from the Three Iron Fund as compensation
    for his injuries. He chose to receive R18 900 per month indefinitely. If money is worth 9,95% per year,
    compounded monthly, then the amount awarded is approximately
    [1] R189 950.
    [2] R2 279 397.
    [3] R6 565 554.
    [4] R7 252 333.
    [5] none of the above.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. math

    Jim wants to deposit money in an account to save for a new stereo system in two years. He wants to have $4,000 available at the time. The following rates are available to him: 6.2% simple interest 6.1% compounded annually 5.58% compounded …
  2. value of money

    A deposit of $2,000 earns interest at a rate of 14% compounded quarterly. After two and a half years the interest rate changes to 13.5% compounded monthly. How much is in the account after six years?
  3. math

    A deposit of $2,000 earns interest at a rate of 14% compounded quarterly. After two and a half years the interest rate changes to 13.5% compounded monthly. How much is in the account after six years?
  4. Math

    A person wants to establish an annuity for retirement purposes. He wants to make quarterly deposits for 20 years so that he can then make quarterly withdrawals of $5,000 for 10 years. The annuity earns 7.32% interest compounded quarterly. …
  5. Math

    (a) Themba wants to deposit a sum of money into a savings account so that he will have R30 000 in 3 years time for an overseas holiday how much money must he deposit into the account if the interest paid on the savings is 8,5% p.a …
  6. Mathematics and investment

    1. Angelo wants to renovate his house in 3 years. He estimates the cost 300,000. How much must Angelo invest now at 8% compounded quarterly in order to have 300,000 3 years from now. 2. Angelo Ancis want to save 500,000 in 5.5 years …
  7. math

    Alice took out a $15,000 loan for college. She is borrowing money from two banks. Bank A charges an interest rate of 6%, and Bank B charges an interest rate of 7%. After one year, Alice owes $960 in interest. How much money did she …
  8. math 142

    1,000 are deposited into an account quarterly  for eight years at an interest rate of 7.87.8​% compounded quarterly. How much is in the account at the end of the 88 ​years?
  9. Math

    Kenny will invest $16,000 in an account with an annual interest rate of 5% and the interest is compounded quarterly. How much money will be in the account in 7 years?
  10. MATH URGENT HELP!

    you put 5,000 in an account that is compounded quarterly. the annual interest rate ,r, is 4%. how much will be in the account after 10 years?

More Similar Questions