Can someone please help me with these? I keep getting these wrong. 1. How long w
ID: 2850123 • Letter: C
Question
Can someone please help me with these? I keep getting these wrong.
1. How long will it take an investment of $3000 to double if the investment earns interest at the rate of 5%/year compounded monthly? (Round your answer to one decimal place.)
2. Find the interest rate needed for an investment of $3,000 to grow to $4,000 in 5 years if interest is compounded continuously. (Round your answer to the nearest hundredth of a percentage point.)
3. Find the interest rate needed for an investment of $8,000 to grow to an amount of $8,800 in 2 months if interest is compounded monthly. (Round your answer to the nearest hundredth of a percentage point.)
i KEEP getting 4.77% but webassign says its wrong
4. An amount of $31,000 is deposited in a bank that pays interest at the rate of 5%/year, compounded annually. What is the total amount on deposit at the end of 5 years, assuming there are no deposits or withdrawals during those 5 years? (Round your answer to the nearest cent.)
What is the interest earned during that period of time? (Round your answer to the nearest cent.)
Explanation / Answer
A=P(1+ r/n)nt
n=number of periods in an year
A= accumulated amount
P=pricipal amount
t =number of years
r =yearly interest rate
1)A=6000,P=3000,r=5%=0.05,n=12months
A=P(1+ r/n)nt
6000=3000(1+ (0.05/12))12t
2=(1+ (0.05/12))12t
12t=166.7
t=13.9 years
2)A=Pert
4000=3000er5
e5r=4/3
5r=0.287682
r=0.05754
r=5.75%