1. Suppose that you deposit a principal amount into a savings account that pays 6.75% annualinterest, compounded monthly
Posted: Thu Jul 07, 2022 2:27 pm
1. Suppose that you deposit a principal amount into a savings account that pays 6.75% annualinterest, compounded monthly.(a) In ten years, the investment has grown to $10,781.77. What was the initialinvestment principal amount? (answer to two decimal places.)(b) How many years will it take for the initial investment to quadruple (grow tofour times its original value)?(c) Suppose you are able to take a penalty-free withdrawal from the savings accountat ten years, and you opt to withdraw the initial amount you invested (your answer to part A. How many years will it take for the remaining amount in the account to quadruple?
1. Suppose that you deposit a principal amount into a savings account that pays 6.75% annual
interest, compounded monthly.
(a) In ten years, the investment has grown to $10,781.77. What was the initial
investment principal amount? (answer to two decimal places.)
(b) How many years will it take for the initial investment to quadruple (grow to
four times its original value)?
(c) Suppose you are able to take a penalty-free withdrawal from the savings account
at ten years, and you opt to withdraw the initial amount you invested (your answer to part A. How many years will it take for the remaining amount in the account to quadruple?
1. Suppose that you deposit a principal amount into a savings account that pays 6.75% annual
interest, compounded monthly.
(a) In ten years, the investment has grown to $10,781.77. What was the initial
investment principal amount? (answer to two decimal places.)
(b) How many years will it take for the initial investment to quadruple (grow to
four times its original value)?
(c) Suppose you are able to take a penalty-free withdrawal from the savings account
at ten years, and you opt to withdraw the initial amount you invested (your answer to part A. How many years will it take for the remaining amount in the account to quadruple?