Name:
Date:
Instructor:
Please use this template to insert your answers for the assignment. Please use one of the three methods for showing your work (EE, ALT keys, or MathType). Remember that your work should be clear and legible. Using the superscript button above (in the font table), you can make powers; example: x2. You may also use Equation Editor as needed too. You may also use Equation Editor as needed too. For instructions, the equations, and examples, please see SLP 3.
On every problem, show all your computations, using the examples in the SLP as a guideline. This is particularly important for the problems that have the answers provided.
1. You deposit $1000 at 2% for 20 years. What's the future value?
Calculations:
Answer: _______________
2. What would be a better deal: depositing money at simple interest of 5% for 20 years, or 10% for 10 years (double the interest, half the time?)
Calculations:
Answer: _______________
3. You deposit $1000 at 2% for 20 years, compounded annually. What's the future value? Compare with problem 1.
Calculations:
Answer: _______________
4. You deposit $1000 at 2% for 20 years, compounded daily. What's the future value? Compare with problem 3. (Remember, in this case your interest is going to be 0.02/365).
Calculations:
Answer: _______________
5. Suppose you pay $1000 into a savings account that pays 2% per year, compounded annually. How many years will would it take for the money in the account to double, to $2000? (There are formulas for this, but I want you to use "successive approximation." Guess a number (of years), calculate the FV, and then try again. When you find a value of t that gives you between $1800 and $2200, then quit. That's close enough.)
Calculations:
Answer: _______________
willie.middlebrooks30
mat101_slp_3_answer_template.docx
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