solve those problems please.
1. Calculate the final balance using the monthly version of Compound Interest Balance Formula (to the nearest cent) as directed below.
a. Break the computation of the balance into two parts, first round 1 + APR to the 12
nearest hundredth, and then use this rounded value in the Compound Interest Balance Formula.
2. a.
Get full accuracy out of your scientific calculator when finding the final balance (to the nearest cent) by not doing any rounding of intermediate calculations yourself. Here is the sequence of calculator key-strokes that should work with many/most scientific calculators:
1000 (1+.0712) ^48=.
Again, report your answer to the nearest cent. Be sure to explain where the 48 in this
3. a.
make here about the effect of rounding 1 + APR that might help you with doing 12
homework (and exam) problems?
Calculate the APY for this situation and round your answer to the nearest hundredth of a percent. Be sure to explain which part(s) of the data ($1000, monthly interest, APR of 07%, four years) you used and which part(s) you were able to ignore.
calculation comes from.
b. Compare your answer to part 2.a. with your answers to part 1. What conclusion can you
b. Use the rounded APY from part 3a in the APY Balance Formula to calculate the balance after four years (to the nearest cent).
c. Compare the balances that you calculated in parts 2.a. and 3.b., and answer both of the following questions:
i. If the balance in 3.b. is not exactly the same as the balance in 2.a., why do you think that this happens?
ii. In general, in a situation where you are not told the APR, but you are given the APY to the nearest hundredth of a percent, which of the following statements best describes how useful the APY Balance Formula is.
