Question

Question 16 (4 points) If you can earn 5 percent per year, compounded annually, in order to have $2500 in 8 years, today you

Question 17 (4 points) A bank promises you $15000 in 5 years if you deposit $1000 today. What annually compounded rate of int

0 0
Add a comment Improve this question Transcribed image text
Answer #1

The formula is A= P(1+r/n) to the power nt

According to this formula we calculate p= A/ (1+r/n) to the power nt.

According to this p= 2500(1+5/100)to the power 8

= 1692

2. According to the above formula hereA= 15000

P=1000

n= 1

t= 5

The rate of return is 71.87% per yr.

Add a comment
Know the answer?
Add Answer to:
Question 16 (4 points) If you can earn 5 percent per year, compounded annually, in order...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT