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() \ C 5 a Ia I ( ‘3 9 C$ a (V 3 . I C S - -r C I) .; II - S C 0 .-t2 I’ p ‘ ° j C °-. - I- 0 . L I ,-... 5 Ic C c o r P d J 4-, 0 -r - - 9— -o I -o S — -ç -i U 4- ii 1 - H + ;- 3 9 0- a p —c 5 0 -1- C 0 -r 5 (2- c 3 —o 5.2 cont.) Ex.1 If $10,000 is invested for 4 years at an annual rate of 8% (simple), how much will the account be worth at the end of 4 years? If the interest was compounded yearly, how much will the account be worth after 4 years? Ex.2 You borrow $2000 at an interest rate of 20%. How much interest is due in 39 weeks? 5.2 cont.) Ex. 3 If $1000 is invested at 5% a) simple interest b) compound Interest with n=1 c) compound interest with n=2 How long does it take to double? Ex.4 What is an account worth in 8 years, if we started with $3000 and got continuous compounding at a rate of 6%? 5.2 cont.) Ex.5 What amount must be invested now in order to have $1,000,000 for retirement in 45 years if it is compounded quarterly at 9%? ‘—F 0” C 1•” o p “0 c - -f V 0 0 C’ — 0 o - —--‘ o — so - I’ -“ - U 3 t’ 0 — 3 - ,- 0 — 9 C.. 3 (t (P 9 0 - 3 8 37 9 5 oc p I -o - I -. (I 40 - 0 U - P c_s — -t-- i::;. X- + -—--s 0 ‘1 - ° . q - r 9 ct° L. 0 n c- 0 — 0 II C I 2 >1 + (0 3 —. C 5 S .5 .—0 0 () C 5 0 -o -o 7 C 5 5 - .2 I - 9 3: - P - - 3 1 0 5 C’ — j —o 9 9 S -ç -o > c,.