Use the following formulas to help you on the below assignment. Use the calculator at https://www.desmos.com/scientific to help you calculate as well.
Question 1
1.
Suppose you have an investment of $1300 earning 5% interest compounded semiannually for 10 years.
What is the rate (after converting a percent to a decimal)?
Question 2
2.
Suppose you have an investment of $1300 earning 5% interest compounded semiannually for 10 years.
What is the n value, the number of times interest will be compounded per year?
Question 3
3.
Suppose you have an investment of $1300 earning 5% interest compounded semiannually for 10 years.
What is the t value, the number of years your account will earn interest?
Question 4
4.
Why is calculating compound interest on your basic 4 function calculator app a bad idea?
Question 5
5.
Use the calculator on Desmos.com/scientific to determine your answer:
Suppose you have an investment of $1300 earning 5% interest compounded semiannually for 10 years.
What will the balance be of the account after 10 years to the nearest cent?
Question 6
6.
Determine the final amount for an investment of $300 earning 4.52% interest compounded quarterly for 3 years.
Question 7
7.
Find the final amount for an investment of $5000 earning 6.3% interest compounded daily for 1 year.
Question 8
8.
Diana invests $800 today in an account earning 6% and compounded annually. How much will it be worth in 5 years? Round to the nearest dollar.
Question 9
9.
Diana's cousing invests $800 today in an account earning 6% and calculated using SIMPLE INTEREST. How much will it be in the account in 5 years? Round to the nearest dollar. (Remember, I=P*R*T is simple interest)
Question 10
10.
Given the same rate and time, will your account make more money with simple interest or compound interest?
