You must show all work for full credit. Please write in a clear way all the...

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You must show all work for full credit. Please write in a clear way all the steps. 1. (3 points) If an initial investment of $35,000 grows to $257,000 in 15 years, what interest rate com- pounded continuously was earned? (Round your answers to two decimal places.) 2. (4 points) Suppose $3600 is invested for 3 years at 8% compounded quarterly. (Round your answers to two decimal places.) 1. What is the future value? 2. How much interest is earned? 3. (3 points) Joachim wants to save $20,0000 for the purchase of a new car 4 years from now. If he can invest in an account that earns 4.8% interest compounded monthly, how much does he need to deposit at the beginning of each month? 4. (3 points) (bonus) Matas would like to buy an automobile, but has no money for the down payment. He knows he can pay $200 at the end of each month for 4 years and the interest rate if 12%. How much money must he borrow for a down payment so that his monthly payments will be $200, to pay off the loan? You must show all work for full credit. Please write in a clear way all the steps. 1. (3 points) If an initial investment of $35,000 grows to $257,000 in 15 years, what interest rate com- pounded continuously was earned? (Round your answers to two decimal places.) 2. (4 points) Suppose $3600 is invested for 3 years at 8% compounded quarterly. (Round your answers to two decimal places.) 1. What is the future value? 2. How much interest is earned? 3. (3 points) Joachim wants to save $20,0000 for the purchase of a new car 4 years from now. If he can invest in an account that earns 4.8% interest compounded monthly, how much does he need to deposit at the beginning of each month? 4. (3 points) (bonus) Matas would like to buy an automobile, but has no money for the down payment. He knows he can pay $200 at the end of each month for 4 years and the interest rate if 12%. How much money must he borrow for a down payment so that his monthly payments will be $200, to pay off the loan?

Answer rating: 100% (QA)

1 To calculate the interest rate compounded continuously we can use the formula A P ert Where A Futu... View the full answer