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Chapter 6

Test Yourself

Chapter

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07:33

Alyssa opened a retirement…

02:05

Jessica's friend Tysh…

02:06

Phyllis invested $\$ 12,00…

01:06

Find the present value (th…

03:30

Ashley has $\$ 120,000$ to…

03:23

Investments Phyllis invest…

05:13

A woman invests $\$ 1,000$…

04:44

Monica receives an $\$ 80,…

02:18

Rachael deposits $\$ 3,600…

07:04

Investment income. A woman…

Okay, so this one says. In two thousand, Jennifer invested one thousand dollars in a seven year certificate of deposit, which is a CD that paid two percent interest, compounded annually. When that CD matured in two thousand seven, she invested all of the money in another seven years CD, also paying two percent compounded annually that matured in twenty forty to the nearest dollar. How much more money to Jennifer earned from twin two thousand seven to two thousand fourteen? Then she did from two thousand to two thousand Son. So currently, we know that the question says we're comparing from two thousand seven to two thousand fourteen and twenty two thousand to two thousand seven. So let's go ahead and write those out. So we have two thousand two two thousand seven. Then we have two thousand seven two two thousand fourteen. So let's go talk about the Saturday equation. So we know that the equation says that X, which is the final amount, is equal to the eye, which is an initial amount up times one plus the rate razed to the T power. So let's go ahead and do that for the first situation, which is from two thousand to two thousand seven. So we know that in two thousand she started with one thousand dollars and then it was a two percent interest so that we can say one plus zero point zero two because that's two percent in decimals on then. If we went from two thousand to two thousand seven, that's seven years, so we can raise that to the seventh Power. If we do that, we get one thousand one hundred forty eight point six nine. So then that means that she earned whatever difference from this to one thousand would be. And if we subtract this one thousand from this figure that we just got, we should get the amount of money that she actually earned. Over those seven years, we're just going to be one hundred and forty eight dollars and sixty nine cents. So that's how much she earned from two thousand to two thousand seven. So then must calculate the final amount from two thousand seven to two thousand fourteen. So we know that in two thousand seven she started with this amount of money because she that's when the CD matured for the first situation that she took that same a lot of money and put it in a different city. So then we can say that that's our initial amount now and then we know that the rate is going to be the same because also two percent and then again in two thousand seven to two thousand fourteen is another seven years. So then we conclude that into our calculator on DH. Then we should get one thousand three hundred nineteen point for eight. So then again, if we subtract this final amount from our initial amount here, the one three one nine point four eight minus the one one for eight point six nine, we should not be able to find out how much money she earned between the years of two thousand seven and two thousand fourteen. So if we subtract that, we would get one hundred and seventy point seven nine. So then we're not done here because this is the amount of money that she earned from two thousand seven to two thousand fourteen. But the questions specifically asks how Muchmore money Jennifer earned from this second period. Then she did from two thousand to two thousand seven. So then we have to stoop. Subtract the final amounts earned from two thousand seventeen to two thousand fourteen and this figure right here, which is the two thousand to two thousand seven, so that if we do one seventy point seven nine minus the one forty eight point six nine one, forty eight six nine and we should be able to get twenty two point one. So then we know that twenty two dollars is the difference. So Jennifer made twenty two more dollars in the second scenario from the second CD, as opposed to the first CD.

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Alyssa opened a retirement account with 7.25$\%$ APR in the year $2000 .$ He…

Jessica's friend Tyshaun found an account that earns2.5 percent int…

Phyllis invested $\$ 12,000,$ a portion earning a simple interest rate of $4…

Find the present value (the amount that should be invested now to accumulate…

Ashley has $\$ 120,000$ to invest and decides to put some in a CD that earns…

Investments Phyllis invested dollar 12,000, a portion earning a simple inter…

A woman invests $\$ 1,000$ in a fund for which interest is compounded annual…

Monica receives an $\$ 80,000$ inheritance. She invests part of it in CDs (c…

Rachael deposits $\$ 3,600$ into a retirement fund each year. The fund earns…

Investment income. A woman invested a 22,000 dollars rollover IRA account in…

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