Question
1. A car was valued at $30,000 in the year 2009. By 2013, the car value had depreciated to $13,000. If the car's value continues
1. A car was valued at $30,000 in the year 2009. By 2013, the car value had depreciated to $13,000. If the car's value continues to drop by the same percentage, what will it be worth in 2020? Round to the nearest dollar.
2. amal wants to save $48,000 for a down payment on a home. How much will he need to invest in an account with 8.8% APR, compounding daily, in order to reach his goal in 5 years? Round to the nearest dollar.
3. Kyoko has $15,000 that she wants to invest. Her bank has several accounts to choose from. Her goal is to have $20,000 by the time she finishes graduate school in 5 years. To the nearest hundredth of a percent, what should her minimum annual interest rate be in order to reach her goal assuming they compound daily? (Hint: solve the compound interest formula for the intrerest rate. Also, assume there are 365 days in a year)
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