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Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
Edition 12ISBN: 978-0132605540Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
Edition 12ISBN: 978-0132605540 Exercise 86
Find the compound amount for each of the following certificates of deposit. Assume daily compounding. (See Example.)
Finding Interest and Compound Amount for Time Deposits
Tony Sanchez plans to purchase three machines for his auto-repair shop. Bank of America requires $20,000 in collateral before making the loan. Therefore, Tony deposits $20,000 with the bank in a 2-year certificate of deposit yielding 1, compounded daily. Find the compound amount and interest.
Solution
Look at the table for 1, and 2 years, finding 1.02020106.
Explain how you can use a time deposit to your advantage. Use an example. (See Objective.)
Finding Interest and Compound Amount for Time Deposits
Tony Sanchez plans to purchase three machines for his auto-repair shop. Bank of America requires $20,000 in collateral before making the loan. Therefore, Tony deposits $20,000 with the bank in a 2-year certificate of deposit yielding 1, compounded daily. Find the compound amount and interest.
Solution
Look at the table for 1, and 2 years, finding 1.02020106.
Explain how you can use a time deposit to your advantage. Use an example. (See Objective.)
Explanation
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Since banks pay higher interest rates on...
Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
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