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Use technology to compute the balance. a. An account with annual compounding, an APR of 12%,...


Use technology to compute the balance.

a. An account with annual compounding, an APR of 12%, and an initial deposit of $500, after 7 years

An account with annual compounding, an AR of 2%, and an initial deposit of $213, after 539 years.

After 7 years, the balance obtained by investing $500 at a rate of 12% with an annual compounding will be [...]

Solutions

Expert Solution

a)
Initial deposit $                  500
APR 12%
Times compounded in a year 1
Time in years 7
Amount after 7 years $1,105.34
b)
Initial deposit $                  213
APR 2.0%
Times compounded in a year 1
Time in years 539
Amount after 539 years $9,201,787.15

Excel formulas:

jeff jeffy answered 2 years ago
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