Answer:
a) You should invest $6941.90 today.
b) The effective annual interest rate is 11%.
c) t is approximately 6.
Step-by-step explanation:
These are compound interest problems. The compound interest formula is given by:

Where A is the amount of money, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per unit t and t is the time the money is invested or borrowed for.
a) How much would you invest today to have $9500 in 8 years if the effective annual rate of interest is 4%?
Here, we want to find the value of P when
.


.
You should invest $6941.90 today.
b) Suppose that an investment of $5750 accumulates to $11533.20 at the end of 13 years, then the effective annual interest rate is i= ?
Here, we have that
, and we want to find the value of i, that is r on the formula above the solutions.

![\sqrt[13]{11533.20} = \sqrt[13]{5750(1 + r)^{13}}](https://tex.z-dn.net/?f=%5Csqrt%5B13%5D%7B11533.20%7D%20%3D%20%5Csqrt%5B13%5D%7B5750%281%20%2B%20r%29%5E%7B13%7D%7D)


The effective annual interest rate is 11%.
c) At an effective annual rate of interest of 5.3%, the present value of $7425.70 due in t years is $3250. Determine t.
Here, we have that
and we have to find t. So


We have that:
log_{a}a^{n} = n
So


t is approximately 6.