MATH 1324 Homework 5 Answers
MATH 1324 Finite Math: Homework on compound interest. Calculate future value of a trust fund with 2.5% annual interest over 35 years. Learn to identify and apply the correct interest formulas.
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MATH 1324 - Finite Math with Applications
Homework 5 (Untimed. 1 Attempt)
DUE October 7, 2022 11:59:00 PM!
Use the following problem to answer questions 1 and 2.
A young man is die beneficiary at a huge crust fund 35 years aga. If they had sec aside 525,000, bow much T
AT11
be in ±e trust now if they could invest the money at 2.5% per year compounded annually?
QI. Identify rhe type problem.
* A. Present Value with compound interest (INCORRECT)
■ B. Future Value with compound interest
■ C. Simple Interest
■ D. Future Value with simple interest
■ E. Present Value with simple interest
’ F. None of the above.
■
1 Given data
CL_ Time pPTinrl (tj _______= 3.6 ppm
O Rate of interest (r) = 2.5%
Ci— Principle amount (P) = 25,000
1 The type of problem is present value with compound interest so it is option A.
Q2. How much money will ±ey have if the interest is compounded semiannually?
* A. $505,709.33
‘ B. 562,773.32
* C._$59,647.50
* D. $65,592.11
■ E. $33,308.30
’ F. None of the above.
«
I 2 |lc
* Compound interest semiannually (CI) = P , 1 + I
I 2 5 2 l1 K i i I 2 5 ™
CI =25000 1 + - —— I = 25000 1+ —
100 200
= 59,647.4993 59,647.50
F = 25000 P = F ( l + f)-’
= 59,647.4993 S59,647.50
t = 35
r = 2.5% = 0.025
m = 2
r 0.025
■"m " 2
n = mt 2(35) = 70
Homework 5 (Untimed. 1 Attempt)
DUE October 7, 2022 11:59:00 PM!
Use the following problem to answer questions 1 and 2.
A young man is die beneficiary at a huge crust fund 35 years aga. If they had sec aside 525,000, bow much T
AT11
be in ±e trust now if they could invest the money at 2.5% per year compounded annually?
QI. Identify rhe type problem.
* A. Present Value with compound interest (INCORRECT)
■ B. Future Value with compound interest
■ C. Simple Interest
■ D. Future Value with simple interest
■ E. Present Value with simple interest
’ F. None of the above.
■
1 Given data
CL_ Time pPTinrl (tj _______= 3.6 ppm
O Rate of interest (r) = 2.5%
Ci— Principle amount (P) = 25,000
1 The type of problem is present value with compound interest so it is option A.
Q2. How much money will ±ey have if the interest is compounded semiannually?
* A. $505,709.33
‘ B. 562,773.32
* C._$59,647.50
* D. $65,592.11
■ E. $33,308.30
’ F. None of the above.
«
I 2 |lc
* Compound interest semiannually (CI) = P , 1 + I
I 2 5 2 l1 K i i I 2 5 ™
CI =25000 1 + - —— I = 25000 1+ —
100 200
= 59,647.4993 59,647.50
F = 25000 P = F ( l + f)-’
= 59,647.4993 S59,647.50
t = 35
r = 2.5% = 0.025
m = 2
r 0.025
■"m " 2
n = mt 2(35) = 70
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Mathematics