Asked by Darshil Patel
Gordon Freeman wants to have $32,000 in 5 years in order to purchase a new car.
(a) How much should he deposit today in an account earning 6.4%, compounded quarterly, to have the required amount in 5 years?
(b) How much interest will be earned?
(c) If he can only deposit $16,000 now, how short of $32,000 will he be?
(d) Suppose he can deposit $16,000 now in an account that compounds interest continuously. What interest rate would he need to accumulate the $32,000 in 5 years?
(e) Suppose he instead decides to make a deposit at the end of each quarter into an account earning, 6.4%, compounded quarterly. How much should he deposit each quarter to have $32,000 in 5 years?
(a) How much should he deposit today in an account earning 6.4%, compounded quarterly, to have the required amount in 5 years?
(b) How much interest will be earned?
(c) If he can only deposit $16,000 now, how short of $32,000 will he be?
(d) Suppose he can deposit $16,000 now in an account that compounds interest continuously. What interest rate would he need to accumulate the $32,000 in 5 years?
(e) Suppose he instead decides to make a deposit at the end of each quarter into an account earning, 6.4%, compounded quarterly. How much should he deposit each quarter to have $32,000 in 5 years?
Answers
Answered by
carl
54
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.