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Rob bought a 1965 Fender Jazzmaster vintage electric guitar in 1980 for a price of $150. In 2017 It was appraised for $4,500. You are going to compare this
appraised value to what the $150 would have earned if it was deposited in a certificate of deposit for those 37 years. Interest on all of Rob's CDs is compounded
continuously
.
a. If the account paid 12.3% Interest for the first 7 years, what would the balance be after the first 7 years? Round to the nearest cent.
b. If the account paid 6 % Interest for the next 10 years, what would the balance be after the first 17 years? Round to the nearest cent.
c. If the account paid 4.1% interest for remaining 20 years, what would the balance be after the 37 years? Round to the nearest cent. [
d. What is the difference between the appraised value of the guitar and the amount the original $150 would have earned in the bank?
