The compound interest formula is \(A=P(1+i)^{n},\) where \(A\) is the future
amount, \(P\) is the present amount or principal, \(i\) is the interest rate per
compounding period expressed as a decimal, and \(n\) is the number of
compounding periods. All interest rates are annual percentage rates (APR).
a) David inherits \(\$ 10\) 000 and invests in a guaranteed investment
certificate (GIC) that earns \(6 \%,\) compounded semi-annually. How long will
it take for the GIC to be worth \$11 000? b) Linda used a credit card to
purchase
a S1200 laptop computer. The rate of interest charged on the overdue balance
is \(28 \%\) per year, compounded daily. How many days is Linda's payment
overdue if the amount shown on her credit card statement is \(\$ 1241.18 ?\)
c) How long will it take for money invested at \(5.5 \%,\) compounded semi-
annually, to triple in value?