Question
c) Find the term of the compound interest loan. (Round your answer to two decimal places.) 4.9% compounded quarterly to obtain $8700 from a principal
c) Find the term of the compound interest loan. (Round your answer to two decimal places.)
4.9% compounded quarterly to obtain $8700 from a principal of $2000.
d) Use the "rule of 72" to estimate the doubling time (in years) for the interest rate, and then calculate it exactly. (Round your answers to two decimal places.)
6% compounded annually.
e) Use the "rule of 72" to estimate the doubling time (in years) for the interest rate, and then calculate it exactly. (Round your answers to two decimal places.)
7.9% compounded weekly.
f) Find the effective rate of the compound interest rate or investment. (Round your answer to two decimal places.)
23% compounded monthly. [Note: This rate is a typical credit card interest rate, often stated as 1.9% per month.]
g) Find the effective rate of the compound interest rate or investment. (Round your answer to two decimal places.)
A $60,000 zero-coupon bond maturing in 9 years and selling now for $44,035.
h) You have just received $135,000 from the estate of a long-lost rich uncle. If you invest all your inheritance in a tax-free bond fund earning 6.8% compounded quarterly, how long do you have to wait to become a millionaire? (Round your answer to two decimal places.)
i) You have just won $110,000 from a lottery. If you invest all this amount in a tax-free money market fund earning 8% compounded weekly, how long do you have to wait to become a millionaire? (Round your answer to two decimal places.)
j) In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the accumulated amount of the annuity. (Round your answer to the nearest cent.)
$2500 annually at 5% for 10 years.
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