Pt = Po(1+r)^n.
r = (6% / 4) / 100% = 0.015 = QPR expressed as a decimal.
n = 4comp/yr * 2yrs = 8 Compounding periods.
$10,000 = Po(1.015)^8,
Po = 10,000 / (1.015)^8 = $8877.11.
Alice requires $10,000 in two years. If the interest rate is 6% and compounded
quarterly, how much must Alice place in the account to have the required amount? (a) $ 6,274.10 (b) $ 8,877.10 (c)$ 8,573.40 (d) $ 5,000.00 (e) $ 10,000.00
3 answers
How much compound interest will an account of $12,000 bear after 6 years at 3.2% APR, compounded annually? (Hint: Use the formula for annual compound interest.)
$2,496.38
$14,496.38
$1,896.38
$496.38
$2,496.38
$14,496.38
$1,896.38
$496.38
Question 6
After a golf ball struck Charl on the head he was awarded an amount from the Three Iron Fund as compensation
for his injuries. He chose to receive R18 900 per month indefinitely. If money is worth 9,95% per year,
compounded monthly, then the amount awarded is approximately
[1] R189 950.
[2] R2 279 397.
[3] R6 565 554.
[4] R7 252 333.
[5] none of the above.
After a golf ball struck Charl on the head he was awarded an amount from the Three Iron Fund as compensation
for his injuries. He chose to receive R18 900 per month indefinitely. If money is worth 9,95% per year,
compounded monthly, then the amount awarded is approximately
[1] R189 950.
[2] R2 279 397.
[3] R6 565 554.
[4] R7 252 333.
[5] none of the above.