If $300 is invested at a 4% interest rate, how much compound interest will be earned...

If $300 is invested at a 4% interest rate, how much compound interest will be earned in 4 years?

(Round to the nearest cent and do not enter the dollar sign)

Exactly how many quarters will it take to double:

$40 at 1% per quarter

(Round to two decimal places)

Solutions

Expert Solution

1. Invested Amount= $300

Interest rate = 4%

Time= 4 years

Compound Interest= ?

=351 ANS

2. Time= ?

Future value= double of $40= $80 (FV)

Present value= $40 (PV)

Rate of interest per quarter is 1% (r)

Taking log with base 10 on both sides

Value of log 2 base 10= 0.30103

Value of log 1.01 base 10= 0.004321374

On substituting the value

0.30103= n*0.004321374

n=69.66 quarters ANS

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

If $300 is invested at a 4% APR, how much interest will be earned in 10...

If $300 is invested at a 4% APR, how much interest will be earned in 10 years compounded annually? (Round to the nearest cent and do not enter the dollar sign)

If $300 is invested at a 4% interest rate for 4 years. How muchmore compound...

If $300 is invested at a 4% interest rate for 4 years. How much more compound interest is earned vs. simple interest (in other words, what was the interest on interest)?(Round to the nearest cent and do not enter the dollar sign)Find the future value of the following cash flow:$10 in 4 years at 5%(Round to the nearest cent and do not enter the dollar sign

1) The Compound Interest Formula Suppose ? dollars are invested at a stated annual interest rate...

1) The Compound Interest Formula Suppose ? dollars are invested at a stated annual interest rate r. If interest is compounded n times per year, then the future value of the investment after t years is given by ?(?) = ? ( 1 + ?? )?? . a) Suppose you invest $20,000 at a stated annual interest rate of 6% and that interest is compounded monthly. How much will your investment be worth in 5 years? Round to the nearest...

Suppose that $6,100 is invested at 4.3% annual interest rate, compounded monthly. How much money will...

Suppose that $6,100 is invested at 4.3% annual interest rate, compounded monthly. How much money will be in the account in (A) 11 months? (B) 9 years? (A) Amount after 11 months: $ (Round to the nearest cent)

How much interest will be earned in the second year on an investment paying 7% interest,...

How much interest will be earned in the second year on an investment paying 7% interest, compounded annually, if $350 was just credited to the account for interest at the end of year 1? a. $374.50 b. $325.50 c. $350.00 d. $5,724.50

1.3 year(s) ago, Vivian invested 67,464 dollars. She has earned and will earn compound interest of...

1.3 year(s) ago, Vivian invested 67,464 dollars. She has earned and will earn compound interest of 11.18 percent per year. In 2 year(s) from today, Sang can make an investment and earn simple interest of 14.79 percent per year. If Sang wants to have as much in 6 years from today as Vivian will have in 6 years from today, then how much should Sang invest in 2 year(s) from today? 2.3 year(s) ago, Sang invested 69,076 dollars. He has...

An individual invested $1,000 for one year and earned $45 in interest. What is the percentage of interest earned?

An individual invested $1,000 for one year and earned $45 in interest. What is the percentage of interest earned?A. 4.25%B. 4.5%C. neither A or B

1) 3 year(s) ago, Trang invested 67,535 dollars. She has earned and will earn compound interest...

1) 3 year(s) ago, Trang invested 67,535 dollars. She has earned and will earn compound interest of 4.3 percent per year. In 1 year(s) from today, Isaac can make an investment and earn simple interest of 8.45 percent per year. If Isaac wants to have as much in 9 years from today as Trang will have in 9 years from today, then how much should Isaac invest in 1 year(s) from today? 2) 1 year(s) ago, Theo invested 78,151 dollars....

9. How much interest is earned in 6 years on $8800 deposited in an account paying...

9. How much interest is earned in 6 years on $8800 deposited in an account paying 7% interest, compounded semiannually? (Round your answer to two decimal places.) 10.$15,000 is deposited for 8 years in an account earning 6% interest. (Round your answers to two decimal places.) (a) Calculate the future value of the investment if interest is compounded semiannually. $ (b) Calculate the future value if interest is compounded quarterly. $ (c) How much greater is the future value of...

If you invest $2,000 with a 4% interest rate compounded annually, how much will you have...

If you invest $2,000 with a 4% interest rate compounded annually, how much will you have in ten years? 2-If you are going to receive $2,000 in six years from now, how much is that worth today, assuming 5% annual simple interest? Which of the following options will generate the highest interest over the term, assuming the same $100 principal? Review Later 5% simple interest rate for 3 years 5% quarterly compounding for 3 years 5% monthly compounding for 2...

Subjects