Directions A few weeks ago I gave an example of a quadratic equation that was in our ever day life. Let's go back to that example. One of the objectives listed in our book simplifies the equation formerly gave, assuming the number of compounding's in a year is 1, which is fine. In other words, the equation to find the amount in an account after years, with Pinitially invested at an interest rate of ris A(t) = P(1 + r)t Question 1: If you initially invest $3,000 for 2 years, what rate is required if you want to earn $4.320? In this case, I want you to solve the equation: 4,320 = 3,000(1 + r)2 Question 2: Let's say you want to double your money in other words, you're going to invest P dollars initially, and after it is invested, you want it to double (A = 2P). What interest rate should you look for in such an account if you'd like it to double in 10 years? Again, solve this problem. Hint: Divide by Pfirst... 2P = P(1 + r) 10 Question 3.I want you to do some guessing. Pull out your calculators It's not realistic these days to see our money double in an account unless you're investing in a very aggressive stock or mutual fund. And even then, it is likely to take years for an initial investment to double. Let's say! would like to invest $10,000, and want it to double to $20,000. If invest in my bank - through a Certificate of Deposit (CD), with interest rate of 1.44% - use your calculator to guess at the number of years it would take to earn $20,000 20,000 = 10,000(1 + 1.4411