commencing at age 60 and ending at age 67 Plan 1: V0 * (1.06)42 = 3‚000‚000 V0 = 3‚000‚000/(1.06)42 V0 = $259‚582.20 Plan 2: V0 * (1.06)17 = 3‚000‚000 V0 = 3‚000‚000/(1.06)17 V0 = $1‚114‚093.26 Plan 3: C * Annuity Compound Factor (6%‚ 37) = 3‚000‚000 C * [((1.06)37 – 1)/0.06] = 3‚000‚000 C *127.27 = 3‚000‚000 C = $23‚572.28 Plan 4: C * Annuity Compounding Factor (6%‚17) = 3‚000‚000 C * 28.21 = 3‚000‚000 C = $106‚334.41 Plan 5: C * Annuity
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13.1 Compound Interest • Simple interest – interest is paid only on the principal • Compound interest – interest is paid on both principal and interest‚ compounded at regular intervals • Example: a $1000 principal paying 10% simple interest after 3 years pays .1 3 $1000 = $300 If interest is compounded annually‚ it pays .1 $1000 = $100 the first year‚ .1 $1100 = $110 the second year and .1 $1210 = $121 the third year totaling $100 + $110 + $121 = $331 interest 13.1 Compound Interest Period
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Name________________________________ UDC – Quantitative Reasoning I EXAMINATION 3 – Personal Finance – Exponential Functions Fall - 2012 Instructions: This exam is worth 100 points. Read each question carefully. Answer each question clearly and concisely. Please‚ show All of Your Work. Remember‚ I do not believe in magic!!! A) B) Answer C) D) 1. What is the simple interest for a principal of $620 invested at a rate of 7% for 3 years? $173.60 $130.20 $172.60 $129.20 A) B) C) Answer D) E)
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on the subject lines. Multiple Choice: True/False (5-2) Compounding 1. F J Answer: aEASY Starting to invest early for retirement increases the benefits of compound interest. a. True b. False (5-2) Compounding 2. F J Answer: bEASY Starting to invest early for retirement reduces the benefits of compound interest. a. True b. False (5-2) Compounding 3. F J Answer: aEASY A time line is meaningful even if all cash flows do not occur annually. a. True b. False
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Chapter 5‚ 6 Review 1. You invested $1‚650 in an account that pays 5 percent simple interest. How much more could you have earned over a 20-year period if the interest had compounded annually? A. $849.22 B. $930.11 C. $982.19 D. $1‚021.15 E. $1‚077.94 2. Today‚ you earn a salary of $36‚000. What will be your annual salary twelve years from now if you earn annual raises of 3.6 percent? A. $55‚032.54 B. $57‚414.06 C. $58‚235.24 D. $59‚122.08 E. $59‚360.45 3. You hope to buy your dream
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I. Abstract The common organic compounds provide us with nutrients are sugars and starches‚ carbohydrates‚ proteins‚ and lipids. In this lab‚ qualitative tests are performed to identify the presence of organic compounds in food using indicators‚ chemical substances that react in a certain way when a particular substance is present. We put one indicator into the each test tube containing different solutions at a time to see what organic compound is present. The color change in the indicator tells
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Company‚ assuming that the CEO and CFO together own 5% of the number of stocks in the company. (Remember that price=price per share and earnings= profit earned per share) 3. The ratio of males:females in the 1st year at TRSM is 5:4 this year. If the school had admitted 200 more males‚ the ratio would have been 3:2. Find the number of students actually admitted this year. 4. a) Solve the system of equations: b) If you graph both of these lines‚ what does the answer you found represent?
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Volatile Organic Compounds (VOCs) have become the greatest challenges to the preservation of the environment today. This group of chemicals is used in almost every sphere of life from industries‚ government institutions and domestically by both an ignorant and knowledgeable public. This paper aims to put to light examples of such compounds‚ look at the effect on the general populace and the environment and outline possible remedies to negative impacts. At the same time‚ it is important to look at
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WHAT IS PHARMACOGNOSY? Pharmacognosy is the study of drugs of natural origin. The term comes from two Greek words: "pharmakon" meaning drug or medicine‚ and "gnosis" meaning knowledge. The American Society of Pharmacognosy defines pharmacognosy as "the study of the physical‚ chemical‚ biochemical and biological properties of drugs‚ drug substances or potential drugs or drug substances of natural origin as well as the search for new drugs from natural sources". Plant preparations are said
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Personal Care period 4 Michelle Manobanda 2012 The FDA permits the use of mercury compounds in eye makeup at concentrations up to 65 parts per million. The preservative thimerosol‚ found in some mascaras‚ is a mercury-containing product. Mercury is associated with a host of health concerns including allergic reactions‚ skin irritation‚ toxicity‚ neurological damage‚ bioacculumation‚ and environmental damage. Mercury readily passes into the body through the skin‚ so normal use of the product
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