Skip to content
Solved Assignments

MATH 1324 Homework 5 Answers

MATH 1324 Finite Math: Homework on compound interest. Calculate future value of a trust fund with 2.5% annual interest over 35 years. Learn to identify and apply the correct interest formulas.

Preview 1 of 2 pages

See the first page exactly as it appears in the document.

  1. Page 1
    Read page 1 as text

    MATH 1324 - Finite Math with Applications Homework 5 (Untimed. 1 Attempt) DUE October 7, 2022 11:59:00 PM! Use the following problem to answer questions 1 and 2. A young man is die beneficiary at a huge crust fund 35 years aga. If they had sec aside 525,000, bow much T AT11 be in ±e trust now if they could invest the money at 2.5% per year compounded annually? QI. Identify rhe type problem. * A. Present Value with compound interest (INCORRECT) ■ B. Future Value with compound interest ■ C. Simple Interest ■ D. Future Value with simple interest ■ E. Present Value with simple interest ’ F. None of the above. ■ 1 Given data CL_ Time pPTinrl (tj _______ = 3.6 ppm O Rate of interest (r) = 2.5% Ci— Principle amount (P) = 25,000 1 The type of problem is present value with compound interest so it is option A. Q2. How much money will ±ey have if the interest is compounded semiannually? * A. $505,709.33 ‘ B. 562,773.32 * C._$59, 647.50 * D. $65,592.11 ■ E. $33,308.30 ’ F. None of the above. « I 2 | lc * Compound interest semiannually (CI) = P , 1 + I I 2 5 2 l 1 K i i I 2 5 ™ CI =25000 1 + - —— I = 25000 1 + — 100 200 = 59,647.4993 59,647.50 F = 25000 P = F ( l + f)-’ = 59,647.4993 S59,647.50 t = 35 r = 2.5% = 0.025 m = 2 r 0.025 ■ "m " 2 n = mt 2(35) = 70

1 more page in the full document

Unlock it once and it stays in your library, ready to chat with or turn into flashcards.

Unlock the full document

More Mathematics study materials

See all

Study this document with CramX

Once it is in your library, every tool can work from it.