Question

Ruth plans to invest some money so that she has $4,300 at the end of three years. Determine how much should she invest today given the following choices: (Do not round intermediate calculations and round your final answer to the nearest penny.)

a. 4.2 percent compounded daily.

Amount required to be invested

$

b. 4.9 percent compounded monthly.

Amount required to be invested

$

c. 5.2 percent compounded quarterly.

Amount required to be invested

$

d. 5.4 percent compounded annually.

Amount required to be invested

$

You have just inherited $580,000. You plan to save this money and continue to live off the money that you are earning in your current job. If you can invest the money in a bond that pays 4.71 percent interest annually, how long will it be before your inheritance is worth $1 million? (If you solve this problem with algebra round intermediate calculations to 5 decimal places, in all cases round your final answer to 2 decimal places, e.g. 8.72.)

Inheritance will be worth $1 million in

years

Blossom Corp had sales of $350,000 in 2017. If management expects its sales to be $476,450 in 6 years, what is the rate at which the company’s sales are expected to grow? (If you solve this problem with algebra round intermediate calculations to 4 decimal places, in all cases round your final answer to 2 decimal places, e.g. 8.72%.)

Growth rate

Answer 1

1)

a)

b)

c)

d)