MHB Simple Interest Investment: How Long Will It Take to Grow $550,000 to $720,000?

  • Thread starter Thread starter Needs help
  • Start date Start date
  • Tags Tags
    Business
AI Thread Summary
Nathan's investment of $550,000 at a simple interest rate of 6.75% per annum will take approximately 8 years to grow to $720,000. Nelle's investment with XYZ Financial, which doubles the inheritance in the same timeframe, implies an interest rate of 12.75%. Jake's college fund, starting with $500 at a 4% annual interest rate compounded monthly, will accumulate to about $15,000 by the time he turns 20. If he waits until age 27 to use the funds, the total will increase to approximately $22,000. Jake plans to withdraw the funds in 48 equal monthly payments, which will be around $458 each month.
Needs help
Messages
1
Reaction score
0
  1. (a) Nathan and Nelle (twins) got an inheritance of $550,000 upon turning twenty one. Nathan decides to invest his money with ABC Financial. If ABC Financial pays simple interest at a rate of 6.75% per annum, how long in years, will it take Nathan’s money to grow to $720,000?

(b) Nelle decided to invest her money with XYZ Financial. If XYZ Financial doubles the inheritance in the same amount of time that Nathan got his money, what was the interest rate charged by XYX Financial?
  1. Jake was born on January 1st 1992. On the last day of the month Jake’s mom opened a college fund for him by depositing $500 into an account that pays 4% per annum compounded monthly. She intends to deposit a similar amount on the last day of each month until Jake is 20 years old.

She will then stop depositing money into the account. However, she will leave the money in the account until Jake is ready to attend college.

  1. How much money will be in the account when Jake turns 20 years?

  1. If Jake has decided that he would begin attending college when he is 27. How much money would then be in the account?
  1. Jake intends to finance his college education by making forty eight (48) equal monthly withdrawals from the account. How much will each withdrawal be?
 
Mathematics news on Phys.org
Beer soaked request follows.
Needs help said:
  1. (a) Nathan and Nelle (twins) got an inheritance of $550,000 upon turning twenty one. Nathan decides to invest his money with ABC Financial. If ABC Financial pays simple interest at a rate of 6.75% per annum, how long in years, will it take Nathan’s money to grow to $720,000?

(b) Nelle decided to invest her money with XYZ Financial. If XYZ Financial doubles the inheritance in the same amount of time that Nathan got his money, what was the interest rate charged by XYX Financial?
  1. Jake was born on January 1st 1992. On the last day of the month Jake’s mom opened a college fund for him by depositing $500 into an account that pays 4% per annum compounded monthly. She intends to deposit a similar amount on the last day of each month until Jake is 20 years old.

She will then stop depositing money into the account. However, she will leave the money in the account until Jake is ready to attend college.

  1. How much money will be in the account when Jake turns 20 years?

  1. If Jake has decided that he would begin attending college when he is 27. How much money would then be in the account?
  1. Jake intends to finance his college education by making forty eight (48) equal monthly withdrawals from the account. How much will each withdrawal be?
Please show us what you have tried and exactly where you are stuck.

We can't help you if we don't where you are stuck.
 
Suppose ,instead of the usual x,y coordinate system with an I basis vector along the x -axis and a corresponding j basis vector along the y-axis we instead have a different pair of basis vectors ,call them e and f along their respective axes. I have seen that this is an important subject in maths My question is what physical applications does such a model apply to? I am asking here because I have devoted quite a lot of time in the past to understanding convectors and the dual...
Fermat's Last Theorem has long been one of the most famous mathematical problems, and is now one of the most famous theorems. It simply states that the equation $$ a^n+b^n=c^n $$ has no solutions with positive integers if ##n>2.## It was named after Pierre de Fermat (1607-1665). The problem itself stems from the book Arithmetica by Diophantus of Alexandria. It gained popularity because Fermat noted in his copy "Cubum autem in duos cubos, aut quadratoquadratum in duos quadratoquadratos, et...
Thread 'Imaginary Pythagorus'
I posted this in the Lame Math thread, but it's got me thinking. Is there any validity to this? Or is it really just a mathematical trick? Naively, I see that i2 + plus 12 does equal zero2. But does this have a meaning? I know one can treat the imaginary number line as just another axis like the reals, but does that mean this does represent a triangle in the complex plane with a hypotenuse of length zero? Ibix offered a rendering of the diagram using what I assume is matrix* notation...
Back
Top