AN times E equals ABNA=1 B=5 E=3 N=0 A. True B. False

How Much Have I Saved? Portfolio

avanturin [10]

The time value of money calculation can be performed using formula equations or online calculators.

The correct responses are;

1) Option 3

2) Option 2

3) The difference in principal is approximately $8,000

The difference in interest earned is approximately $2,977.87

4) It is better to invest more money at the beginning of the 30 years

Reasons:

Option 1: Present value = 0

Amount invested per month, A = $25/month

The Annual Percentage Rate, APR, r = 3.25%

Number of years = 30

The future value of an annuity is given by the formula;

$\displaystyle FV_{A} = \mathbf{A \cdot \left (\frac{ \left(1 + \frac{r}{m} \right)^{m\cdot t} - 1}{\frac{r}{m} } \right)}$

In option 1, m = 12 periods per year

Therefore;

$\displaystyle FV_{A} = 25 \times \left (\frac{ \left(1 + \frac{0.0325}{12} \right)^{12 \times 30} - 1}{\frac{0.0325}{12} } \right) \approx \mathbf{15,209.3}$

Contribution = $25 × 12 × 30 = $9,000

Total interest earned = $15,209.3 - $9,000 = $6,209.3

Final balance = $15,209.3

Option 2: Present value = 0

Amount, A = $75/quarter

m = 4 periods per year

The Annual Percentage Rate, APR = 4.00%

Therefore;

The effective interest rate is therefore;

$\displaystyle r_{eff} = \left(1 + \frac{0.04}{4} \right)^4 - 1 \approx \mathbf{0.04060401}$

$\displaystyle FV_{A} = 75 \times \left (\frac{ \left(1 + \frac{0.04060401}{4} \right)^{4 \times 30} - 1}{\frac{0.04060401}{4} } \right) \approx 17,437.7$

Using an online calculator, FV = $17,467.04

Contribution = $75 × 4 × 30 = $9,000

Total interest earned = $17,467.04 - $9,000 = $8,467.04

Final balance = $17,467.04

Option 3: Present value = $1,000

APR = 6.25%

m = 12 period per year

Number of years, t = 30 years

Therefore;

$\displaystyle FV = \left (1 + \frac{0.0625}{12} \right)^{12 \times 30} \approx \mathbf{6,489.17}$

Contribution = $1,000

Total interest earned = $6,489.17 - $1,000 = $5,489.17

Final balance = $6,489.17

The table of values is therefore;

$\begin{tabular}{|c|c|c|c|}Option \# &Contribution &Total Interest Earned&Final Balance\\1&\$9,000&\$6,209.3 & \$15,209.3\\2&\$9,000&\$8,467.04 &\$17,467.04\\3&\$1,000&\$5,489.17&\$6,489.17\end{array}\right]$

1) The option that has the least amount invested are option 3

Option 3 investment plan is a present value of $1,000, invested for 30 years at 6.25% APR compounded monthly.

2) Option 2 yielded the highest amount at the end of 30 years, given that the APR is higher than the APR for option 1, although the amount invested over the period are the same.

The basis of option 2 investment plan is $75 invested quarterly at 4.00% APR compounded monthly for 30 years.

3) The difference in the principal invested for the highest and lowest final balance is $9,000 - $1,000 = $8,000

The difference in the interest earned is; $8,467.04 - $5,489.17 = $2,977.87

4) In option 1 the present value is zero, therefore zero amount was invested at the beginning.

The interest to investment ration is 6,209.3:9,000 ≈ 0.7:1

In option 3, all the money was invested at the beginning.

The interest to investment ratio of option 3 is; 5,489.17:1,000 ≈ 5.5:1

Given that the interest to investment ratio, which is the return on investment is larger when more money is saved at the beginning as in option 3, it is better to invest more money at the beginning.

Learn more about future value of an annuity here:

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3 0

2 years ago

Slove the equation ×+20=29

photoshop1234 [79]

Answer: x = 9

Step-by-step explanation:

x + 20 = 29

x = 9

9 + 20 = 29

8 0

3 years ago

One large bubble separates into four small bubbles so that the total area of the small bubbles is equal to the area of the large

anzhelika [568]

Answer:

10 cm.

Step-by-step explanation:

We'll begin by calculating the area of the small bubble. This can be obtained as follow:

Radius (r) = 5 cm

Area (A) =?

Since the bubble is circular in nature, we shall use the formula for area of circle to determine the area of the bubble. This is illustrated below:

A = πr²

A = π × 5²

A = 25π cm²

Next, we shall determine the total area of the small bubbles. This can be obtained as follow:

Area of 1 bubble = 25π cm²

Therefore,

Area of 4 bubbles = 4 × 25π cm²

Area of 4 bubbles = 100π cm²

Finally, we shall determine the radius of the large bubble. This can be obtained as follow:

Area of large bubble = total area of small bubbles = 100π cm²

Radius (r) =?

A = πr²

100π = πr²

100 = r²

Take the square root of both side

r = √100

r = 10 cm

Thus, the radius of the large bubble is 10 cm

5 0

2 years ago

Can anyone help me solve this Algebra 2 Problem, i literally cant figure it out

Andrews [41]

Answer:

Zeros : 1 , -1, 3

Degree : 4

End Behaviour : At x-> ∞ f(x) -> ∞ and x->-∞ f(x) -> ∞

Y - intercept : -3

Extra Points: (0,-3), (2,-3)

Step-by-step explanation:

f(x) = 0 to find the zeros

$Therefore (x+1)(x-1)^{2} (x-3) = 0$

Clearly x = -1,1,3

Here 1 is a repeating root as it is (x-1)²

Degree is highest power of x in f(x)

Clearly it is x*x²*x = x⁴ is the maximum power of x

Thus degree is 4

Looking at end behavior we substitute x->∞ and x-> -∞

Clearly f(x)>0 as all terms are positive and f(x)->∞

Similarly when x->-∞

f(x)>0 as 2 terms are -ve and their product is positive thus f(x)-> ∞

Y-Intercept is f(0)

f(0) = (0+1)(0-1)²(0-3) = 1*1*-3 = -3

Thus Y-Intercept is -3

Substitute x = 0 , 2 for extra points

Thus f(0) = -3

and f(2) = -3

Thus points on the graph (0,-3), (0,2)

We can use all this information to draw a graph remember that 1 is a repeating root so that will be a point of minima. The graph is a parabola that passes through x-axis at x = -1, 3.

5 0

3 years ago

lois wants to send a box of oranges to a friend by mail. The box of oranges cannot excede a mass of 10 kg. If each orange has a

lubasha [3.4K]

Easy first cover kilograms into grams 1kg=1000g. resulting in 10,000g dividing that by the weight of the oranges getting 10,000/200=50 so the answer is 50 oranges. (assuming they all weigh the same)

4 0

3 years ago

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