Fill in the blanks.
a. Simple interest is computed on the
b. In calculations using compound interest, earned interest is periodically added to the principal and thereafter itself earns
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Chapter 5 Solutions
Finite Mathematics for the Managerial, Life, and Social Sciences
- Applications Saving for college In 20 years, a father wants to accumulate 40,000 to pay for his daughters college expenses. If he can get 6% interest, compounded quarterly, how much must he invest now to achieve his goal?arrow_forwardInterest Leigh Jacks plans to invest 500 into a money market account. Find the interest rate that is needed for the money to grow to 1200 in 14 years if the interest is compounded quarterly.arrow_forwardKyoko has 10,000 that she wants to invest. Her bankhas several investment accounts tochoose from, allcompounding daily. Her goal is to have 15,000 bythe time she finishes graduate school in 6 years. Tothe nearest hundredth of a percent, what should herminimum annual interest rate be in order to reach hergoal? (Hint: solve the compound interest formula forthe interest rate.)arrow_forward
- Angela invested $15,000 in a savings account. If the interest rate is 4%, how much will be in the account in 10 years by each method of compounding? compound quarterly compound monthly compound continuouslyarrow_forwardRachael deposits $1500 into a retirement fund each year. The fund earns 8.2% annual interest, compounded monthly. If she opened her account when she was 19 years old, how much will she have by the time she is 55? How much of that amount will be interest earned?arrow_forward
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