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Practice exercises 1. $1000 is invested at a rate of 11% per year compounded monthly. (a) Find the principal after 1 month (b) Find the principal after 1 year. 2. If a savings fund pays interest at a rate of 10% per year compounded semiannually, how much money invested now will amount to $4500 after 1 year? ... Fetch This Document
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Make two calculations: (a) find the amount the 1 million dollars would be worth in 20 years if you could receive it all now and invest it at a modest 6% per year, compounded annually and (b) find the amount the 1 million dollars would be worth if you set up an annuity paying 6% per year, compounded annually, and deposited the $50,000 per year ... Access This Document
Quick Quiz: Part 2 - California State University, Northridge
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