4.12. How much will $8,000 be worth in 8 years with 6.75% interest compounded continuously?
4.13. How much money must you deposit now to have $6,000 in ten years at 6.5% compounded continuously?
4.14. How much money will you have in seven years if you deposit $7,000 in the bank at 8.5% interest compounded daily?
4.15. How long will it take money to triple with continuous compounding at 8% interest?
4.16. Republic Finance offers money at 2.32% per month compounded monthly.
(a) What is the nominal interest rate?
(b) What is the effective annual interest rate?
(c) How many years will it take an investment to triple if interest is compounded monthly?
(d) How many years will it take an investment to quadruple if the nominal rate is compounded continuously?
4.17. Suppose your savings account pays 6% interest compounded monthly. If you deposit $18,000 for four years, how much will you have?
4.18. If you invest $25,000 today at a 7.5% interest compounded weekly, what will be your ending value after 15 years?
4.19. What will be the amount accumulated by each of these present investments?
(a) $12,250 in 15 years at 8.5% compounded quarterly.
(b) $15,750 in 12 years at 8.32% compounded weekly.
(c) $25,500 in 10 years at 7.5% compounded monthly.
4.20. How many years will it take an investment to double if the interest rate is 8.4% compounded at the given intervals?
(a) Quarterly
(b) Monthly
(c) Continuously
4.21. A series of equal quarterly payments of $25,000 for 10 years is equivalent to what future worth amount at an interest rate of 8.4% compounded at the given intervals?
(a) Quarterly
(b) Monthly
(c) Continuously