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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


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


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

Verified Answer :

Lampa20

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^(352)
60001.04^70 = 93,429.71

Third question:
after first year tractor's value will be 0.8615450. After 3 years its value will be:
(0.86)^3*15,450 = 9,827.07

kaylaquinley66

Answer:

23: B

24: D

25: C

Step-by-step explanation

The test said it was correct

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