Question

Chris Jackson invests $30,700 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years. Chris withdraws the accumulated amount of money. (a) * Your answer is incorrect. Compute the amount Chris would withdraw assuming the investment earns simple interest. (Round answers to decimal places, eg. 458,581) Total withdrawn $ 19648 eTextbook and Media Save for Later Attempts: 1 of 15 used Submit Answer (b) Click here to view factor tables Compute the amount Chris would withdraw assuming the investment earns interest compounded annually. (Round factor values to 5 decimal places.es 125124 and final answer to decimal places, eg 458,581) Total withdrawn $ e Textbook and Media Save for Later Attempts: 0 of 15 used Submit Answer (c) Click here to view factor tables Compute the amount Chris would withdraw assuming the investment earns interest compounded semiannually. (Round factor values to 5 decimal places, eg 1 25124 and final answer to decimal places, eg 458,581) Total withdrawn $

Answer 1

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А B с D E 1 2 3 Invests amount Annual interest Period 30700 8% 8 Years 4 5 Simple interest 50348 6 a) 7 8 b) 9 10 c) 11 Annual Compounding 56823.56 Invests amount Annual interest Periods 30700 4% 12 16 13 14 Semi annual compounding 57500.52 15 16

For calculation ref:

A B С D 1 2 Invests amount Annual interest Period 30700 0.08 3 4 8 Years 5 6 a) Simple interest =C2+C2*23*04 7 8 b) Annual Compounding =C2*(1+C3)^C4 9 10 c) Invests amount Annual interest Periods 30700 =C3/2 =C4*2 11 12 13 14 Semi annual compounding =C10*(1+C11)^012 15 16