to the amount indicated on the date of the last deposit Each deposit is made at the end of the compounding period a An amount of

Question

to the amount indicated on the date of the last deposit Each deposit is made at the end of the compounding period a An amount of 1250 in 3 years at 4 8 compounded annually b An amount of 12 000 in 9 years at 5 25 compounded semi annually c An amount of 1500 in 2 years at 6 compounded monthly d An amount of 4500 in 5 years at 7 compounded quarterly e An amount of 1700 in 2 5 years at 5 3 compounded monthly f An amount of 5000 in 6 5 years at 4 9 compounded quarterly 4 Matt wants 4000 in an account 3 years from now He considers monthly or semi annual deposits Matt can invest his money at 5 compounded monthly or at 5 2 compounded semi annually a Calculate Matt s monthly deposit for the monthly option b Calculate Matt s semi annual deposit for the semi annual option c Which option should Matt choose Explain 5 Renee is saving for a trip to Australia She wants 10 000 in 5 years How much should Renee deposit at the end of each month into an account that pays 6 4 compounded monthly 6 Suppose you make a deposit at the end of each month into an account that pays 7 6 compounded monthly for 7 years The amount at the end of the 7 years is 10 000 How much do you invest Answers 1 a 7153 29 c 9639 51 2 a 929 46 3666 70 3 a 397 29 c 58 98 e 53 12 b 5218 54 d 10 625 56 b 2342 60 d 7215 02 b 530 08 d 189 86 f 164 47 4 a 103 22 b 624 63 r Monthly option because Matt has to deposit less money

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