Copyright © 2008, The McGraw-Hill Companies, Inc.
- The population of Allegany City is 27,540. An urban planning consultant predicts that the population will grow at
a 1.95% effective rate for the next 10 years. What is she predicting the population will be in 10 years? - Find the effective rate equivalent to 8.01% compounded monthly.
- Approximately how long would it take to double your money at a rate of 4.59% compounded quarterly?
- Burali-Forti Logic Processors Inc. had sales of $375,000,000 in the last year. The company predicts that its sales will
grow at an 8% annual rate for the foreseeable future. According to this prediction, what will the company’s sales be in
5 years? - Gabriela invested $3,500 at 4^13 ⁄ 16 % compounded monthly for 4½ years. How much interest did she earn?
- Approximately what effective interest rate would you need to earn in order for a $2,500 investment to grow to $10,000
in 12 years?
Chapter 3 Exercises 139