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Sure! Let's go through each question step by step: To calculate the value of Tom's account at the end of 3 years with a 3


Sure! Let's go through each question step by step:

To calculate the value of Tom's account at the end of 3 years with a 3.7 percent interest rate compounded semi-annually, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years.

Using this formula, the calculation would be: A = £8,000(1 + 0.037/2)^(2*3) = £8,000(1.0185)^6  £8,000(1.1270)  £9,016.

So, the value of Tom's account at the end of 3 years, compounded semi-annually, would be approximately £9,016.

To calculate the value of Tom's account at the end of 3 years with a 3.7 percent interest rate compounded continuously, we can use the formula: A = P*e^(rt), where A is the final amount, P is the principal amount, r is the annual interest rate, and t is the number of years.

Using this formula, the calculation would be: A = £8,000 e^(0.037 3)  £8,000 e^(0.111)  £8,000 1.117  £8,936.

So, the value of Tom's account at the end of 3 years, compounded continuously, would be approximately £8,936.

To calculate how much Tom should deposit today if he requires £12,000 at the end of 3 years with a semi-annual compounding interest rate of 3.7 percent, we can rearrange the formula from question 1 to solve for P.

The calculation would be: P = A / (1 + r/n)^(nt) = £12,000 / (1 + 0.037/2)^(2*3)  £12,000 / (1.0185)^6  £12,000 / 1.1270  £10,642.

So, Tom should deposit approximately £10,642 today to have £12,000 at the end of 3 years, compounded semi-annually.

To find the interest rate at which Tom's account will double in 3 years with quarterly compounding, we can use the formula: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount, r is the interest rate, n is the number of times the interest is compounded per year, and t is the number of years.

We want the final amount to be double the principal amount, so we can set up the equation: £8,000 * 2 = £8,000(1 + r/4)^(4*3).

Simplifying the equation, we get: 2 = (1 + r/4)^12.

To find the interest rate, we can take the 12th root of both sides: (1 + r/4) = 2^(1/12).

Solving for r, we get: r = 4(2^(1/12) - 1).

Using a calculator, we find that r  0.0304.

So, the interest rate at which Tom's account will double in 3 years with quarterly compounding is approximately 3.04 percent.

To calculate how long it will take for Jonathan's account to grow to £22,000 with a 12 percent interest rate, we can use the formula: A = P(1 + r)^t, where A is the final amount, P is the principal amount, r is the interest rate, and t is the number of years.

Using this formula, the calculation would be: £22,000 = P(1 + 0.12)^t.

To solve for t, we can divide both sides by P and take the logarithm: log(£22,000/P) = t * log(1.12).

Dividing both sides by log(1.12), we get: t = log(£22,000/P) / log(1.12).

Since we don't know the initial principal amount P, we can't determine the exact time it will take for the account to grow to £22,000. However, once we have the value of P, we can substitute it into the equation to find t.

I hope that helps! Let me know if you have any further questions or if there's anything else I can assist you with.

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