Problem 2: Mary just deposited $33,000 in an account paying 10% interest. She plans to leave the money in this account for seven years. How much will she have in her account at the end of the seventh year?
Hello. I am having a hard time determining which function I should be using to solve these problems. Can someone please put me on the right track????? Thanks to anyone that can help me.
Problem 1: Joe won a lottery jackpot that will pay him $12,000 each year for the next ten years. The market rate is currently 12%. How much does the lottery have to invest today to pay out this prize to Joe over the next ten years?
Problem 2: Mary just deposited $33,000 in an account paying 10% interest. She plans to leave the money in this account for seven years. How much will she have in her account at the end of the seventh year?
Problem 3: Mary and Joe would like to save up $10,000 by the end of three years from now. They currently have $2500 in a savings account. They would like to make equal year end deposits to this savings account to pay for furniture when they purchase it three years from now. This account pays 8% interest. How much should the year end payments be?
Problem 2: Mary just deposited $33,000 in an account paying 10% interest. She plans to leave the money in this account for seven years. How much will she have in her account at the end of the seventh year?
Hello, fw_mathis!
Here are the first two . . .
I must assume you are familiar with all the necessary formulas:
. . compound interest, annuities, amortization, etc.
1) Joe won a lottery jackpot that will pay him $12,000 a year for the next 10 years.
The market rate is currently 12%. .How much does the lottery have to invest today
to pay out this prize to Joe over the next ten years?
The amortization formula is: .
. . where: .
So we have: .
This is just compound interest: .2) Mary just deposited $33,000 in an account paying 10% interest.
She plans to leave the money in this account for seven years.
How much will she have in her account at the end of the seventh year?
We have: .
Therefore: .
if a person was indebted for $200 that was due after six months & $300 due after one year. if the lender approved of an 18% interst rate per year.Calculate the amount the borrower should pay now.
if the borrower decided to pay both of the amounts after one year from now. calculate the amount he should pat in that date
Hi ,plz i need ur help .i have an exam after couple of hours.
if a person was indebeted for $200 that was due after six months & $300 due after one year. if the lender approved of an 18% interst rate per year.Calculate the amount the borrower should ppay now.
if the borrower decided to pay both of the amounts after one year from now. calculate the amount he should pat in that date
plz help me soroban...
If a person borrowed $2000 at 15%on the first of June 2000 to pay it in two equal times: the first on December 1st, 2000 & the other on June 1st,2001 & if the datum date was June 1st,2000. Calculate the value of each payment
if the datum date was changed to be 1/6/2001.calculate the value of each payment.
Using the rule
p= m/(1+rt)[
or M= p(1+rt
the interest is applied once every 6 months. he has 1 year to pay it off. so that's two 6 month periods, so the interest would be applied twice. thereofre, t = 2 over all. but we want each payment, so we take t = 1, for the first payment, and t = 1 for the second as well. the rate r, is the percentage written as a decimal, so r = 15% = 0.15. p is the principal, which is the original amount, so p = 1000 (since we have 2 equal installments. M is the amount owed after the said period. so just plug these into the formula.
Both payents would be the same, so let's just find the first:
So the two payments are:
the phrase "datum date" is unfamiliar to me, but i suppose it just means that the interest is applied after the year is up.if the datum date was changed to be 1/6/2001.calculate the value of each payment.
we would use r = 0.15, t = 1/2, p = 1000 for each payment, in the same formula. we would get each payment to be 1075
[FONT='Times New Roman','serif']If a person borrowed $2000 at 15%on the first of June 2000 to pay it in two equal times: the first on December 1st, 2000 & the other on June 1st,2001 & if the datum date was June 1st,2000. Calculate the value of each payment[/FONT][FONT='Times New Roman','serif'][/FONT][FONT='Times New Roman','serif']X??[/FONT]
[FONT='Times New Roman','serif']p= m/(1+rt)[/FONT]
[FONT='Times New Roman','serif']2000= X/(1+0.15*6/12) + X/(1+0.15*12/12)[/FONT]
[FONT='Times New Roman','serif']2000= 2.225x /1.23625[/FONT]
[FONT='Times New Roman','serif']2.225X=2472.5[/FONT]
[FONT='Times New Roman','serif']So, X=2472.5/2.225 = 1111.24[/FONT]
[FONT='Times New Roman','serif'][/FONT]
[FONT='Times New Roman','serif']if the datum date was changed to be 1/6/2001.calculate the value of each payment.[/FONT]
[FONT='Times New Roman','serif']M= p(1+rt)[/FONT]
[FONT='Times New Roman','serif']M= 2000 (1+0.15*1)= 2300[/FONT]
[FONT='Times New Roman','serif']So, 2300 = X (1 + 0.15 * 6/12) + X[/FONT]
[FONT='Times New Roman','serif']2300=2.075 X[/FONT]
[FONT='Times New Roman','serif']X= 1108.43 [/FONT]
If a person borrowed $2000 at 15%on the first of June 2000 to pay it in two equal times: the first on December 1st, 2000 & the other on June 1st,2001 & if the datum date was June 1st,2000. Calculate the value of each payment.X??
p= m/(1+rt)
2000= X/(1+0.15*6/12) + X/(1+0.15*12/12)
2000= 2.225x /1.23625
2.225X=2472.5
So, X=2472.5/2.225 = 1111.24
if the datum date was changed to be 1/6/2001.calculate the value of each payment
M= p(1+rt)
M= 2000 (1+0.15*1)= 2300
So, 2300 = X (1 + 0.15 * 6/12) + X
2300=2.075 X
X= 1108.43