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Name _____________ Period ____ Compound Interest A P 1 r n nt Honors Brief Calc 6.2 WS Compound Interest Compound Continuously A Pe rt P Ae rt Present Value r P A1 n nt or A P1 r n 1. Find the amount that results when $100 is invested at 4% compounded quarterly after a period of 2 years. 2. Find the amount that results when $500 is invested at 8% compounded quarterly after a period of 2.5 years. 3. Find the amount that results when $600 is invested at 5% compounded daily after a period of 3 years. 4. Find the amount that results when $10 is invested at 2% compounded continuously after a period of 2 years. 5. Find the amount that results when $100 is invested at 3% compounded continuously after a period of 2.25 years. 6. Find the principal needed now to get $100, that is, the present value, after 2 years at 2% compounded monthly. 7. Find the principal needed now to get $1000, that is, the present value, after 2.5 years at 6% compounded daily. 8. Find the principal needed now to get $600, that is, the present value, after 2 years at 4% compounded quarterly. 9. Find the principal needed now to get $80, that is, the present value, after 3.25 years at 2% compounded continuously. 10. Find the principal needed now to get $400, that is, the present value, after 1 year at 4% compounded continuously. nt 11. Which of the two rates would yield the larger amount in 1 year, 6% compounded quarterly or 6.25% compounded annually? [Hint: Start with a principal of $10,000 in each instance.] 12. Which of the two rates would yield the larger amount in 1 year, 9% compounded monthly or 8.8% compounded daily? [Hint: Start with a principal of $10,000 in each instance.] 13. Find the effective rate of interest for 5% compounded quarterly. 14. Find the effective rate of interest for 5% compounded continuously. 15. What rate of interest compounded annually is required to double an investment in 3 years? 16. What rate of interest compounded annually is required to triple an investment in 5 years? 17a. How long does it take for an investment to double in value if it is invested at 8% compounded monthly? b. How long does it take if the interest is compounded continuously?