Intermediate Algebra
Intermediate Algebra
19th Edition
ISBN: 9780998625720
Author: Lynn Marecek
Publisher: OpenStax College
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Question
Compound Interest: a. A tithe of $35,000 is made to a local church. The money is to be invested and the accumulated amount used to purchase a new youth group bus. How long will it take for the tithe to double in value if the money is invested at 7.75% APR compounded monthly? b. What is the annual interest rate (APR) required for $22,500 to accumulate to $50,000 in 14 years with interest compounded semi-annually? C. What is the present value or Principal, that will return $40,000 in a Guaranteed Investment Certificate (GIC) in 9 years at 4 % % APR compounded quarterly?
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Transcribed Image Text:Compound Interest: a. A tithe of $35,000 is made to a local church. The money is to be invested and the accumulated amount used to purchase a new youth group bus. How long will it take for the tithe to double in value if the money is invested at 7.75% APR compounded monthly? b. What is the annual interest rate (APR) required for $22,500 to accumulate to $50,000 in 14 years with interest compounded semi-annually? C. What is the present value or Principal, that will return $40,000 in a Guaranteed Investment Certificate (GIC) in 9 years at 4 % % APR compounded quarterly?
2. Compound Interest: a. A tithe of $35,000 is made to a local church. The money is to be invested and the accumulated amount used to purchase a new youth group bus. How long will it take for the tithe to double in value if the money is invested at 7.75% APR compounded monthly? b. What is the annual interest rate (APR) required for $22,500 to accumulate to $50,000 in 14 years with interest compounded semi-annually? C. What is the present value or Principal, that will return $40,000 in a Guaranteed Investment Certificate (GIC) in 9 years at 4 % % APR compounded quarterly?
expand button
Transcribed Image Text:2. Compound Interest: a. A tithe of $35,000 is made to a local church. The money is to be invested and the accumulated amount used to purchase a new youth group bus. How long will it take for the tithe to double in value if the money is invested at 7.75% APR compounded monthly? b. What is the annual interest rate (APR) required for $22,500 to accumulate to $50,000 in 14 years with interest compounded semi-annually? C. What is the present value or Principal, that will return $40,000 in a Guaranteed Investment Certificate (GIC) in 9 years at 4 % % APR compounded quarterly?
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