The balance in the account given by A = P ( 1 + r n ) N where principal amount ( P ) is $ 10 , 000 , annual percentage rate of ( r ) is 6.5 % compounded ( n ) is 12 times per year and number of compounding ( N ) is 120 .

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Answer 1

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Chapter A3, Problem 53E

To determine

To calculate: The balance in the account given by A=P(1+rn)N where principal amount (P) is $10,000, annual percentage rate of (r) is 6.5% compounded (n) is 12 times per year and number of compounding (N) is 120.

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Often lottery winnings are divided into equal payments given annually for 20 – 25 years. So the present value of the winnings is worth less than the actual jackpot, depending on the rate at which money could be invested. Find the present value in dollars using the given conditions. Complete the table for each amount, interest rate, and number of payments. Jackpot Amount Interest Rate Equal Annual Payments Present Value (in dollars) $7,000,000 8% 20 $7,000,000 14% 20 $4 $7,000,000 8% 25 $ $7,000,000 14% 25 (Round to the nearest dollar as needed.)

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Find the present value of the given investment.An investment earns 2% per year and is worth $10,000 after 5 years.

Answer 2

Question

Chapter A3, Problem 53E

To determine

To calculate: The balance in the account given by A=P(1+rn)N where principal amount (P) is $10,000, annual percentage rate of (r) is 6.5% compounded (n) is 12 times per year and number of compounding (N) is 120.

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Answer 3

Question

Chapter A3, Problem 53E

To determine

To calculate: The balance in the account given by A=P(1+rn)N where principal amount (P) is $10,000, annual percentage rate of (r) is 6.5% compounded (n) is 12 times per year and number of compounding (N) is 120.

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Answer 4

Question

Chapter A3, Problem 53E

To determine

To calculate: The balance in the account given by A=P(1+rn)N where principal amount (P) is $10,000, annual percentage rate of (r) is 6.5% compounded (n) is 12 times per year and number of compounding (N) is 120.

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Answer 5

Chapter A3, Problem 53E

To determine

To calculate: The balance in the account given by A=P(1+rn)N where principal amount (P) is $10,000, annual percentage rate of (r) is 6.5% compounded (n) is 12 times per year and number of compounding (N) is 120.

Answer 6

Chapter A3, Problem 53E

To determine

To calculate: The balance in the account given by A=P(1+rn)N where principal amount (P) is $10,000, annual percentage rate of (r) is 6.5% compounded (n) is 12 times per year and number of compounding (N) is 120.

Answer 7

Chapter A3, Problem 53E

To determine

To calculate: The balance in the account given by A=P(1+rn)N where principal amount (P) is $10,000, annual percentage rate of (r) is 6.5% compounded (n) is 12 times per year and number of compounding (N) is 120.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. A3 - Checkpoint 1 Worked-out solution available at...Ch. A3 - Prob. 2CP Ch. A3 - Prob. 3CP Ch. A3 - Prob. 4CP Ch. A3 - Prob. 5CP Ch. A3 - Prob. 6CP Ch. A3 - Prob. 7CP Ch. A3 - Prob. 1E Ch. A3 - Prob. 2E Ch. A3 - Prob. 3E

The balance in the account given by A = P ( 1 + r n ) N where principal amount ( P ) is $ 10 , 000 , annual percentage rate of ( r ) is 6.5 % compounded ( n ) is 12 times per year and number of compounding ( N ) is 120 .

Solution Summary: The author calculates the balance in the account given by A=P(1+rn)N.

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To calculate: The balance in the account given by A=P(1+rn)N where principal amount (P) is $10,000, annual percentage rate of (r) is 6.5% compounded (n) is 12 times per year and number of compounding (N) is 120.

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