‫االسم ‪ /‬حسن عبد الحميد يونس‬

‫الرقم ‪20151423 /‬‬

‫الماده ‪ /‬اقتصاد هندسى‬

‫‪7‬‬ ‫المجموعه ‪/‬‬

‫رقم الكشف ‪69 /‬‬

 Assignment (Simple and compound interest)
Q1- Hossam invested $15,000 of his money at a 1.8% per year bank
rate. Write an equation that represents Hossam's account balance after t
years. What is Hossam's account balance after five years?
Given:
P=15,000$
N=5
I=1.8% (assume compound interest)
(compound annually interest equation {f=p(1+i)^n}
Sol:
Equation that represent hossam account balance after (t) years
=15000(1+.018)^t
Hossam account balance after 5 years =15000(1+.018)^5=16399.48

Q2- Mohsen has $500 to invest. The bank offers an interest rate of 6%
compounded annually.
a) How much money will Jack have after 1 year?
b) How much money will Jack have after 5 years?
c) How much money will Jack have after 10
years? Givens :
P=500$
I=6%(compound annually interest equation {f=p(1+i)^n}
N=1,5,10
Sol:
After one years=500(1+.06)=530
After 5 years=500(1+.06)^5=669.11
After 10 years =500(1+.06)^10=895.42
Q3- Suppose you go to the bank and invest $6,000. Find the account
balance to the nearest cent after 15 years paying 4%:
a) Compounded annually
b) Compounded semi-annually
c) Compounded quarterly
givens:
p=6000$
n(years)=15
i=4%
sol:
a) (compound annually interest equation {f=p(1+i)^n}
F=6000(1+.04)^15=10806
b) Compounded semi-annually (n=15,m=2)
{compound semi-annually interest equation {f=p(1+i/m)^(n)(m)}
F=6000(1+.04/2)^(15*2)=10868
C)compounded quartaerly (n=15,m=4)
{compound quarterly interest equation {f=p(1+i/m)^(n)(m)}
F=6000(1+.04/4)^(15*4)=10900
Q4- A youth group has a yard sale to raise money for a charity. The
group earns $800 but decided to put its money in the bank for a while.
Calculate the amount of money to the nearest cent the group will have if:
a) Hot Bank pays compound quarterly interest at a rate of 3% and the
youth group leaves the money in for 5 years.
b) Cool Bank pays compound monthly interest at a rate of 2% and
the youth group leaves the money in for 7 years.
A)Givens :
P=800$ ,i=3%,n=5 ,m=4
{compound quarterly interest equation {f=p(1+i/m)^(n)(m)}
Sol:
F=800(1+.03\4)^(5)(4)=929
B)Givens:
P=800$ ,i=2% ,n=7,m=12
{compound monthly interest equation {f=p(1+i/m)^(n)(m)}
Sol:
F=800(1+.02\12)^(7)(12)=1017
Q5- Suppose you deposit $3,000 into an account that earns 6%
compounded annually interest. Find the balance of the account to the
nearest cent after 24 months.
Givens:
P=3000$
I=6%
N=2(compound annually interest equation {f=p(1+i)^n}
Sol:
Balance of account after 24 months=3000(1+.06)^2=3371