Question

nual interest rate or $23,543 what 51) or as a ally to have $8,500 to buy 53) Solve the problem. 54) Jennifer invested $3000 in her savings account for 7 years. When she withdrew it, she had $4862.79. Interest was compounded continuously. What was the interest rate on the account? Round to the nearest tenth of a percent 55) The State Employees' Credit Union offers a 1-year certificate of deposit with an APY (or effective rate) of 5.59 If interest is compounded quarterly, find the actual interest rate. Round to the nearest tenth of a percent. Solve the problem. Round to the nearest cent as needed. 56) Samantha's savings account has a balance of $4643. After 25 years, what will the amount of interest be at 6% compounded annually? 4643 (1+ 0.06 25 ) 57) A bank has $750,000 to lend for 7 months. It can lend it to a local contractor at a simple interest rate of 12% can lend it to a small business that will pay 12% compounded monthly. If the bank wants to maximize its

Answer 1

As per policy we have to answer first question

Solution: 6.9% Working A = P.elrut) 4862.79 = 3000 - elr.7) 4862.79 = 3000 · e(7r) 4862.79 3000 (7r) 3000 30000 1.6209 = e(7r) log(1.6209) = log(er) 0.2097 = 7 r.log(e) 0.2097 -= 70 log(e) 0.2097 7. log(e) r=0.069 or 6.9%