Homework 16:
Due Monday 7/21/14
1. A bond ad online says that it has a 1.09% APR and interest is compounded daily (so
n = 365.25). The minimum amount required to start this bond is $25,000. If you
purchase this bond at the minimum amount, what is the function that represents the
balance?
2. Lets take the function from problem 1 and see how long it would take to be a
millionaire. Set the output of the function equal to 1,000,000 and solve for t.
3. Another cheaper bond has an APR of 1.05% and a purchase price of $500. If the
interest is compounded continuously what is the function that represents the balance?
4. How long would it take the bond from problem 3 to make you a millionaire?
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