Exercises Compound Interest MATH-1035

Question 1 You deposit $600 in an account earning 7% interest compounded annually. How much will you have in the account in 10 years? Round value to the nearest cent. Question 2 You deposit $2000 in an account earning 4% interest compounded quarterly. How much will you have in the account in 15 years? Round value to the nearest cent. Question 3 You deposit $4000 in an account earning 8% interest compounded monthly. How much will you have in the account in 5 years? Round value to the nearest cent. Question 4 If 24300 dollars is invested at an interest rate of 8 percent per year, find the value of the investment at the end of 5 years for the following compounding methods. Round value to the nearest cent. (a) Annual: $ (b) Semiannual: $ (c) Monthly: $ (d) Daily: $ Question 13 A couple needs $14,229.56 as a down payment for a home. If they invested the $7,000.00 they have at 8% compounded semi-annual, how long will it take for the money to grow into $14,229.557 Round value to 1 decimal place. It will take :year's. Question 5 If 46200 dollars is invested at an interest rate of 6 percent per year, compounded semiannually, find the value of the investment after the given number of years. Round value to the nearest cent. (a) 5 years: Your answer is (b) 10 years: Your answer is (c) 15 years: Your answer is Question 6 What interest will be earned if $7,000.00 is invested for 2 years at 11% compounded every 4 months? Round value to the nearest cent. You would earn $ in interest. . Question 7 For her 3rd birthday Nadine's parents invested $13,000.00 in an 13-year certificate for her that pays 11% compounded monthly. How much is the certificate worth on Nadine's 16 birthday? Round value to the nearest cent. The certificate will be worth $ Question 8 A 27-year old woman has $400,175.00 in an IRA account. Due to medical concerns of a family member, she decided to make no additional contributions to the account but expect it to grow at 8% compounded semi-annual. How much does she expect to have in the account when she retires at age 627 Round value to the nearest cent. The IRA should be worth $ Question 8 How much would you need to deposit in an account now in order to have 54000 in the account in 15 years? Assume the account earns 7% interest compounded monthly. Round value to the nearest cant. & Question 10 April wants $13,000 saved in 2 years to make a down payment on 3 house. How much money should she invest now at 3.1% compounded annually in order to mest her goal? Round value to the nearest cent. 3 @ Question 11 A person invests $9000 at 3% interest compounded annually for 6 years and then invests the balance (the 59000 plus the interest earned) in an account at 8% interest for 10 years. Find the combined value of the investment to the nearest cent after 16 years. {Hint: You need to break this up into two steps/calculations. Be sure to round your balance at the end of the first 6 years to the nearest cent so you can use it in the second set of calculations.) S|' Question 12 Suppose you have 57400 deposited at 2.4% compounded semiannually. About long will it take your balance to increase to $93007 Round value to one decimal place. YEars