You want to save money for college. You will deposit $30 every month for 8 years compounded quarterly at a rate of 2.3%. Will the following equation help you find the answer?
Match the correct problem to the formula you would use.
I.Andrew wants to know how much money he will make if he deposits $8,000 into an account that compounds continuously at a rate of 3.2% for 6 years.
II. Alyssa is just about to turn 12 and wants to know how much money she should deposit every month in her account. She wants to save to go to Walt Disney world When she is 16. She will need $3,000 and the bank will pay her 1.4%.
III. Marissa wants to take a trip to Spain in 6 years. How much should she deposit into an account now that pays 2.5% interest, compounded daily, to meet her goal? She will need to have $8,600. Round to the nearest dollar.
| Draggable item | arrow_right_alt | Corresponding Item |
|---|---|---|
I. | arrow_right_alt | Present Value of a Single deposit |
II. | arrow_right_alt | Continuously Compounding |
III. | arrow_right_alt | Present value of a periodic deposit |
Travis deposits $400 every month into an account that yields 2.3% interest, compounded monthly. How much is in the account after 26 months?
What equation would you use to find the answer to the following question?
Ashley wants to go on a $15,000 vacation in 8 months. She has a bank account that pays 3.1% interest, compounded quarterly. How much must she deposit now to afford the vacation?
Kaylin is planning on buying a home in 5 years. She’d like $6,000 for a down payment in 5 years. Her credit union has an account that will pay 4.5% per year compounded monthly. How much must she invest now in this account to have the desired funds available in 5 years?
Sam wants to invest enough money today to have $5,200 for tuition when he goes to college in three years. How much does he need to invest if he invests his money at 6% per year, compounded monthly?
Gary wants to have $110,000 saved in 20 years. How much must he deposit monthly into an account that pays 7.2% interest, compounded monthly?
Katie wants to install a pool in eight years. She will need $50,000 to cover the cost. How much should she deposit monthly into an account that pays 4% interest compounded monthly in order to reach this goal?
Troy wants to buy a car in 5 years and will need $25,000. If he deposits into an account that yields 4.1%, compounded monthly, how much will he need to deposit now to reach that goal?
Logan wants to have $80,000 saved in 15 years. How much must he deposit monthly into an account that pays 7.1% interest, compounded monthly?
Thor deposits $12,000 into a 4-year CD at an interest rate of 5.8%, compounded daily. What is the annual percentage yield? Round to the nearest hundredth.
Brad deposited $4,800 in an account that yields 3.15% interest, compounded semiannually. How much is in the account after 75 months?
Squidward deposits $12,000 into a 4-year CD at an interest rate of 6.5%, compounded weekly. What is the annual percentage yield(APY)?
Using the desmos graph above, determine how long it would take Adrian to reach $5,000 for his vacation. He will deposit $300 every month, which will earn 2.7%, compounded monthly. Round to the nearest tenth of a year. Use the equation below
Using the desmos graph above, determine how long it would take Elliot to reach $15,000 for his tuition costs. He will deposit $300 every month, which will earn 2.7%, compounded monthly. Round to the nearest tenth of a year. Use the equation below: