math

Theseare the problems in chapter 6 section 1.

1. Find the amount. That will be accumulated in each account under the condition set forth.

A principal of $2000 is accumulated with 7.5% interest compounded monthly for

4 years.

15. Find the rate of interest required to achieve the conditions set forth:

A = $5000; P = $1250; t = 12 years; interest is compounded quarterly.

21. Find the number of interest periods to achieve the conditions set forth.

A = $6000; P = $1000; interest is 12% compounded quarterly.

35. The Tanners have received an $8000 gift from one of their parents to invest in their child’s college education. They estimate that they will need $20,000 in 12 years to achieve their educational goals for their child. What interest rate compounded semiannually would the Tanners need to achieve this goal?

These are the problems in chapter 6 section 2.

11. A sinking fund is being established, the goal of which is to reach $100,000. Calculate the payment, where i is the interest rate per period.

n = 22, i = .03

15. Elena’s son will enter college 16 year from now. At that time, she would like to have $20,000 available for college expenses. For that purpose, her bank will set up an account that pay 7% compounded quarterly. If she makes payment into the account at the end of each quarter, what must Elena’s payments be to achieve her goal?

17. Eduardo is a 40-year-old individual who plans to retire at age 65. Between now and then, $2000 is paid annually into his IRA account, which is anticipated to pay 5% compounded annually. How much will be in the account upon Eduardo’s retirement?

24. The Brewsters are saving for their daughter’s college days. They would like to be able to withdraw $800 each month from their account for five years once their daughter starts college. Assuming that their account will earn interest at the rate of 9% compounded monthly. What sum of money should the Brewsters have in the account when their daughter starts college?

These are the problems in chapter 6 section 3.

1. Convert the given interest rate to the APR.

6.5% compounded quarterly

7. Convert the given interest rate to the APR.

9% compounded daily

17. Find the payment for the given length of time, amount, and interest rate.

P = $20,000; i = 3% per month; monthly payment for 6 years

21. Find the payment for the given length of time, amount, and interest rate.

P = $12,000; r = 11.9% compounded monthly; monthly payment for 60 months