Question

A. How much money would you need to invest today at 4.5% annual interest compounded quarterly to have $10,000 in 30 months? {Accurate to the nearest dollar.} B. You have $20,000 today and want to earn $1,000 in interest over the next three years. What annual interest rate would you have to earn on your investment, assuming it is compounded monthly? (Express answer to nearest tenth of percent.) Formula: A(t) = P(1 + r/n)^{nt} P=Principal; r = annual rate of interest; n= #times interest compounded annually, t= #years A = Value of investment after t years. {For each part show initial equation to be used to answer question. Then final answer.}

          A. How much money would you need to invest today at 4.5% annual interest compounded quarterly to have $10,000 in 30 months? {Accurate to the nearest dollar.}
B. You have $20,000 today and want to earn $1,000 in interest over the next three years. What annual interest rate would you have to earn on your investment, assuming it is compounded monthly? (Express answer to nearest tenth of percent.)
Formula:
A(t) = P(1 + r/n)^{nt}
P=Principal; r = annual rate of interest; n= #times interest compounded annually, t= #years
A = Value of investment after t years.
{For each part show initial equation to be used to answer question. Then final answer.}

$A. How much money would you need to invest today at 4.5% annual interest compounded quarterly to have $10,000 in 30 months? {Accurate to the nearest dollar.} B. You have 20,000 today and want to earn1,000 in interest over the next three years. What annual interest rate would you have to earn on your investment, assuming it is compounded monthly? (Express answer to nearest tenth of percent.) Formula: A(t) = P(1 + r/n)^nt P=Principal; r = annual rate of interest; n= #times interest compounded annually, t= #years A = Value of investment after t years. For each part show initial equation to be used to answer question. Then final answer.$

Added by Sonia M.

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