A $4,000.00 principal earns 5% interest, compounded annually. After 4 years, what is the balance in the account?

$500,000.00

$4,862.03

$4,600.00

$20,250.00

24.

A $6,000.00 principal earns 8% interest, compounded semiannually. After 35 years, what is the balance in the account?

$22,800.00

$39,600.00

$88,712.07

$93,429.71

25.

A tractor costs $15,450.00 and depreciates in value by 14% per year. How much will the tractor be worth after 3 years? $22,889.85

$15,408.00

$8,451.28

$9,827.07

Question

Mathematics

Sean Burnett

18 September, 23:40

A $4,000.00 principal earns 5% interest, compounded annually. After 4 years, what is the balance in the account?

$500,000.00

$4,862.03

$4,600.00

$20,250.00

24.

A $6,000.00 principal earns 8% interest, compounded semiannually. After 35 years, what is the balance in the account?

$22,800.00

$39,600.00

$88,712.07

$93,429.71

25.

A tractor costs $15,450.00 and depreciates in value by 14% per year. How much will the tractor be worth after 3 years? $22,889.85

$15,408.00

$8,451.28

$9,827.07

+5

Answers (1)

Know the Answer?

Marianna Sanders · Answer 1

First question:

interest rate is 5% annually. After 4 years relative value of interest will be 1.05^4

Now we multiply that with starting funds and get

4000 * 1.05^4 = 4862.03

Second question:

Because interest is 8% semiannually that means that after 35 years relative value of interest will be 1.04^ (35*2)

6000*1.04^70 = 93,429.71

Third question:

after first year tractor's value will be 0.86*15450. After 3 years its value will be:

(0.86) ^3*15,450 = 9,827.07