Monday, November 12, 2012

Compound Interest: Comparing Accumulated Values and Solving for Minimum Rate of Interest

Problem 30 Chapter 4.5

Compound Interest: To Celebrate the birth of a new daughter, Helyn invests 6000 Swill francs in a college savings plan to pay for her daughter's first year of college in 18 years. She estimates that 25,000 francs will be needed. If the account pays 7.2% interest compounded daily...
Part A: will she meet her investment goal?
Part B: If not, find the minimum rate of interest that will enable her to meet this 18 year goal.

Audio File: Part A
Audio File: Part B

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