This website uses cookies to ensure you have the best experience.

997 words - 4 pages

Simple interest is the interest that is computed on the original principal only.
If I denotes the interest on a principal P (in dollars) at an interest rate of r per year for t years, then we have
I = Prt
The accumulated amount A, the sum of the principal and interest after t years is given by and is a linear function of t.
A= P + I = P + Prt = P(1 + rt)
A bank pays simple interest at the rate of 8% per year for certain deposits.
a. If a customer deposits \$1000 and makes no withdrawals for 3 years, what is the total amount on deposit at the end of three years?
P = 1000, r = 0.08, and t = 3 A=P(I+rt)=1000[1+(0.08)(3)]=1240 or \$1240
b. What is the interest earned in that ...view middle of the document...

Annually b. Semiannually c. Quarterly . Daily
Annually, where, P = 1000, r = 0.08, and m = 1. Thus, i = r = 0.08 and n = 3, so A=1000[1 + (0.08/1)]^3 = 1259.71
b. Semiannually, Here, P = 1000, r = 0.08, and m = 2. Thus, i=0.08/2 and n = (3)(2) = 6, so A=1000[1+(0.08/2)]^6 =1265.32
c. Quarterly. P = 1000, r = 0.08, and m = 4.Thus, i=0.08/4 and n = (3)(4) = 12, so A=1000[1+(0.08/4)]^12 = 1268.24
d. Daily. P = 1000, r = 0.08, and m = 365. Thus,i=0.08/365 and n = (3)(365) = 1095, so A=1000[1+(0.08/365)]^1095 = 1271.22
Continuous Compound Interest Formula
A = Pe^rt where P= Principal r = Annual interest rate compounded continuously t= Time in years A= Accumulated amount at the end of t years
Find the accumulated amount after 3 years if \$1000 is invested at 8% per year compounded (a) daily, and (b) continuously.
P = 1000, r = 0.08, m = 365, and t = 3, we find P = 1000, r = 0.08, and t = 3, we find
A = Pe^rt = 1000e^(0.08)(3) ≈ 1271.25
Note that the two solutions are very close to each other.
Effective Rate of Interest Formula
r(eff) = [1+(r/m)]^m - 1 where reff = Effective rate of interest r= Nominal interest rate per year m= Number of conversion periods per year
Find the effective rate of interest corresponding to a nominal rate of 8% per year compounded a. Annually
Annually. Let r = 0.08 and m = 1. Then r(eff) = [1+(.08/1)]^1 - 1 =0.08 = 8%
If the effective rate of interest reff is known, then the accumulated amount after t years on an investment of P dollars can be more readily...

## Other Papers Like Business Math

### Math Essay

279 words - 2 pages Five (5) years ago, you bought a house for \$171,000, with a down payment of \$30,000, which meant you took out a loan for \$141,000. Your interest rate was 5.75% fixed. You would like to pay more on your loan. You check your bank statement and find the following information: Escrow payment \$261.13 Principle and Interest payment \$822.84 Total Payment \$1,083.97 Current Loan Balance \$130,794.68 Write a one to two (1

### Math

453 words - 2 pages Roar Lyrics I used to bite my tongue and hold my breath Scared to rock the boat and make a mess So I sat quietly, agreed politely I guess that I forgot I had a choice I let you push me past the breaking point I stood for nothing, so I fell for everything You held me down, but I got up (hey!) Already brushing off the dust You hear my voice, your hear that sound Like thunder, gonna shake the ground You held me down, but I got up Get

### Math - 587 words

587 words - 3 pages Example “initial” DEVRY MATH221 Discussion posts This is a collection DEVRY Math221 “Statistics for Decision Making” Discussion posts. This class is set up as a 8-week class where in the first 7-weeks you must post 3 discussion posts. These posts should be viewed as the ‘initial’ posts for each week. Normally the 2nd and 3rd posts each week are responses to other students. These discussions make up ~14% of the class so they are very

### Math - 661 words

661 words - 3 pages Associate Level Material Appendix A: U.S Health Care Timeline Use the following timeline or create a timeline of your own with eight major events, including the four provided below, from the last 50 years. You may change the dates in the box to match the dates of your events. Include the following in your timeline: Medicare and Medicaid HIPAA of 1996 State Children’s Health Insurance Program (SCHIP) Prospective Payment System (PPS

### Math - 376 words

376 words - 2 pages Imagine you are a manager at a major bottling company. Customers have begun to complain that the bottles of the brand of soda produced in your company contain less than the advertised sixteen (16) ounces of product. Your boss wants to solve the problem at hand and has asked you to investigate. You have your employees pull thirty (30) bottles off the line at random from all the shifts at the bottling plant. You ask your employees to measure the

### Math Standards

1350 words - 6 pages On a Property of the Least Common Multiple of Two Integers Dan Kalman The Least Common Multiple of two integers, is the least positive integer that is divisible by both integers. This is connected by a simple formula with the greatest common divisor of the two integers, a familiar topic from modern algebra and number theory. The purpose of this paper is to present a proof for the connection between least common multiple and greatest common

### Math Inc

1090 words - 5 pages Cameron Dufour Consumer Behaviour Journal Week of October 30th, 2011 Items/Services Purchased | | Cost (\$) | Details | Groceries - Wal-Mart & Sobeys | | \$55.00 | Personal | Gasoline - Macewen North | | \$20.00 | Social | Fast Food - Subway | | \$15.00 | Social | Picture Frame - Wal-Mart | | \$15.00 | Personal | Cell Phone | | \$60.00 | Personal | Total | | \$165.00 | | Summary: As I look over for my purchases for this

### Discrete Math

609 words - 3 pages Phase One Individual Project: BeT Proposal Natalie Braggs IT106-1401A-03: Introduction to Programming Logic Colorado Technical University 01/12/2014 Table of Contents Introduction 3 Problem Solving Techniques (Week 1) 4 Data Dictionary 5 Equations 6 Expressions 7 8 Sequential Logic Structures (Week 2) 9 PAC (Problem Analysis Chart)-Transfers 10 IPO (Input, Processing, Output)-Viewing Balances 11 Structure Chart

### Math Help

835 words - 4 pages Strategies to Overcome Math Anxiety Classroom Skills * Your instructors want you to succeed. Remember, they are unsuccessful unless you are successful. Your instructor wants you to learn the material and is willing to help when you ask questions. * Ask questions when you become stuck or as soon afterwards as possible. * Make your questions as specific as possible. It is easier for your instructor to answer a question such as, “I

### Math Percents

258 words - 2 pages Controlling Your Checkbook Portfolio You recently opened your checking account with ReallyBigBank on August 1 using \$100.00. Complete the checkbook register using the following transactions then explain how you completed the first four transactions. August 1 – Opened the checking account with \$100.00 August 2 – Purchased groceries from Grocer’s Haven for \$43.82 plus 4% tax. (Check 101) August 2 – Paid \$8.00 for parking using your

## Related Essays

442 words - 2 pages City University College of Science & Technology Faculty of Business DBQT 2013 Business Statistics Semester May 2016 ASSIGNMENT 1 Answer all questions. Kindly print the cover page and attached with your answer script. 1. Classify the following sets of data as qualitative or quantitative. a) The religious affiliations of college students b) The height of each member of a basketball team c) Students’ scores on the first statistics exam d) The

### Business Math Pg. 193 194 Essay

561 words - 3 pages p.193-194 2-20 Even 2. List Price Chain Discount Net Price Equivalent Rate Single Equivalent Discount Rate Trade Discount Net Price Panasonic DVD player \$199 8/4/3 0.856704 0.143296 \$28.52 \$170.48 100%-8=92% = 0.92 100%-4=96% = 0.96 100%-3=97% = 0.97 (.92) X (.96) X (.97) = 0.856704 \$199 X 0.856704 = 170.484096 1-0.856904= 0.143296 \$199 X 0.143296 = \$28.52 4. List Price Chain Discount Net Price Trade Discount Trotter Treadmill

### Math Waiver Essay

562 words - 3 pages student from taking math requirement. It is unnecessary for this student to take math requirement due to major concerns. Gordon is currently a member of the Pawnee tribe of Oklahoma. He is planning to enter ASU college of Law after undergraduate degree completion. College Algebra is one of the required courses for many majors such as accounting, business, engineering….. The basic idea of general education requirement is to give student a basic

### Math Essay 329 Words

329 words - 2 pages Home Page » English and Literature My Paper In: English and Literature My Paper Pre-Algebra (MTH 099E) Writing Prompt Each prompt must be typed (unless otherwise noted). Your response should be at least 5 – 6 sentences long. These should be well thought out, complete sentences with correct punctuation. Prompts 1 – 4 are worth 10 points each. Prompt 5 is worth 20 points. PROMPT #1: Consider both your short-term