Simple & Compound Interest Questions and Answers

A company has a manufacturing plant that is producing quality pairs of pants They find that in order to produce 110 pairs of pants in a month it will cost 7170 Also to produce 440 pairs of pants in a month it will cost 16080 Find an equation in the form y mx b where is the number of pairs of pants produced in a month and y is the monthly cost to do so Answer y Question Help Mercage instructor

transcript The Lees have a combined net income of 8839 a month Find the amount they should allot for each category if they aim to follow the 50 30 20 rule for their budget Round your answers to the nearest cent if necessary Answer 2 Points Necessities 4419 5 Wants 2651 7 Keypad Keyboard Shortcut

3x 2 Find the area of the highlighted sector O 192 6 375 0 14 cm 246 3

Itranscript Andrea is buying a house for 130 000 She plans to make a 12 down payment Closing costs include 550 for 6 months of homeowners nsurance 600 for 6 months of property tax 100 for the title fee and 350 in transaction fees Andrea also agreed to pay three points exchange for a 0 75 reduction in interest rate Determine the amount of money Andrea needs to cover closing costs Round your answer to the nearest cent answer 2 Points Keypa Keyboard Shortc

14 000 invested at 6 compounded semiannually after a period of 10 years

Suppose that for retirement purposes over the course of 21 years you make monthly deposits of 320 00 into an ordinary annuity that pays an annual interest rate of 2 199 compounded monthly After those 21 years you then want to make monthly withdrawals for 19 years reducing the balance in the account to zero dollars a Find the amount of money you have accumulated in the annuity over the first 21 years b How much should you withdraw monthly from your account so that the balance reaches zero dollars after the final 19 years

7 The race director wants to buy an insurance policy for the race in case a participant is injured Previous races suggest that 85 of the time no injury occurs The other 15 of the time an injury occurs and the full deductible must be paid Based on these assumptions which insurance policy has the least expected cost Explain Race Insurance Options Option Cost Deductible S A 75 0 B 40 100 C 25 250

Evelyn deposits 246 at the end of every six months into an account that earns 1 71 compounded monthly Find the future value of the account in 10 years and 6 months Round your answer to the nearest cent future value

Correct Suppose you d like to save enough money to pay cash for your next car The goal is to save an extra 26 000 over the next 6 years What amount must be deposited quarterly into an account that earns 4 6 interest compounded quarterly in order to reach your goal Round your answer to the nearest cent if necessary Itranscript 3 Formulas

Find the interest rate needed for the sinking fund to reach the required amount Assume that the compounding period is the same as the payment period 16 854 to be accumulated in 4 years quarterly payments of 925 The interest rate needed is approximately Type an integer or decimal rounded to two decimal places as needed XTE

Proportional Reasoning A mountain bike was discounted by 30 and sold for 342 30 What was the original price of the bike O 00 3 0 1

Current Attempt in Progress Lamb Company deposited 15 000 annually for 6 years in an account paying 5 interest compounded annually What is the balance of the account at the end of the 6th year For calculation purposes use 5 decimal places as displayed in the factor table provided Round answer to 2 decimal places eg 52 75 Click here to view the factor table Account at the end of the 6th year Save for Later Attempts 0 of 1 used Submit Answer

Selected financial information for Brookeville Manufacturing is presented in the following table 000s omitted 4 800 460 510 630 650 240 190 330 420 320 200 Sales revenue Purchases of direct materials Direct labor Manufacturing overhead Operating expenses Beginning raw materials inventory Ending raw materials inventory Beginning work in process inventory Ending work in process inventory Beginning finished goods inventory Ending finished goods inventorv O O A 1 740 OB 1 540 OC 1 650 OD 1 560 C

Finding the Effective Annual Yield in a Savings Account Suppose a savings and loan pays a nominal rate of 2 on savings deposits Find the effective annual yield if interest is com pounded as stated in Exercises 43 49 Give answers to the nearest thousandth of a percent 43 annually 2 000 44 semiannually 2 010 45 quarterly 2 015 46 monthly 2018 47 daily 2 020 48 1000 times per year 2020 49 10 000 times per year 2 020

Ruiz Engineering Contractors incurred service salaries and wages of 36 400 28 000 direct and 8 400 indirect on an engineering project The company applies overhead at a rate of 20 of direct labor Record the entries to assign service salaries and wages and to apply overhead Credit account titles are automatically indented when the amount is entered Do not indent manually Account Titles and Explanation To record service salary and wages Debit Credit 17

Daphne borrows 2500 from a financial institution that charges 6 annual interest compounded monthly for 2 years The amount that Daphne will need to pay back at the end of the term is OA 5081 99 B 2817 90 OC 3564 40 D 2654 19

An investment offers 8 annual interest compounded quarterly What is the interest rate per compounding period A 4 B 8 C 2 D 1

5 a Kala has a box of candies and will randomly choose one piece The odds against choosing a lemon flavored piece are choosing a lemon flavored piece 0 010 X 5 18 b Justin is playing a board game He must roll dice to determine if he gets an extra turn The probability of getting an extra turn is favor of getting an extra turn 00 What is the probability of 0 0 to Find the odds in

Problem ID PRABMQWY Each year a certain amount of money is deposited in an account which pays an annual interest rate of r so that at the end of each year the balance in the account is multiplied by a growth factor of x 1 r 500 is deposited at the start of the first year an additional 200 is deposited at the start of the next year and 600 at the start of the following year Write an expression for the value of the account at the end of three years in terms of the growth factor x Use the symbol to represent an exponent For example 52 should be typed as 5 2 2019 Illustrative Mathematics All Rights Reserved Type your answer below mathematical expression

Brent Pickett borrowed 4000 from his brother Dave He agreed to repay the money at the end of 4 years giving Dave the same amount of interest that he would have received if the money had been invested at 1 75 compounded quarterly How much money did Brent repay his brother Brent repaid his brother Round to the nearest cent as needed TECHN

Five thousand raffle tickets are sold for 3 each Three prizes will be awarded one for 2 000 and two for 1 Assume that the probability that any given ticket is selected for the 2 000 prize is and the probability th 5 000 2 given ticket is selected for a 1 000 prize is 5 000 Jennifer purchases one of these tickets Complete parts a and b below Winners do not have their ticket costs of 3 refunded to a Determine Jennifer s expected value Type an integer or a decimal rounded to the nearest hundredth as needed

A single six sided die is rolled Find the probability of rolling an odd number or a number less than 6 The probability is Type an integer or a fraction Simplify your answer This ques

Bond Batman Par value 3 000 coupon 8 quarterly maturity 2 years trades today for 3 146 93 Bond Robin Par value 3 000 coupon 8 annual maturity 20 years trades today for 3 464 52 Caution The par value is not 1 000 The market annual interest rate jumps by 2 By what percentage will the bond price change Compute the answer or both Batman and Robin Show work The market annual interest rate drops by 2 By what percentage will the bond price change Compute the answer or both Batman and Robin Show work Provide a commentary on the results observed by comparing Batman and Robin

John works full time for a company His health insurance premium is 18 000 annually He pays 12 of the premium If he received his paycheck weekly how much would be deducted from his paycheck If you get a decimal round to 2 decimal places Example 10 25 For your answer only put the digits Do not use the dollar symbol Answer 41 53 41 54 Question 56 B P 1 nt B Pert B P 1 nt How much simple interest does 15 000 earn in 60 months at an interest rate of 1 6 Round to the nearest whole For you answer do NOT include symbols words commas etc Answer 16200 x 1200 Question 57 I prt B Pert I prt

Round to the nearest whole John invested 22 000 in an account that earns 3 interest compounded continuously What is the balance of the account after 10 years B Pet uestion 61 1 prt For you answer do NOT include symbols words commas etc Answer 28600 x 29697 B P 1 nt 0 1 point B Pert I prt Bob is 18 years old and has a wealthy grandfather His grandfather invested 50 000 in an account that earns 2 interest compounded continuously How much interest will he earn when he is 35 years old Round to the nearest whole

You deposit 5000 in an account earning 5 interest compounded continuously How much will you have in the account in 10 years S

Craig is practicing pitching a baseball He can hit the target an average of 72 of the time He wants to hit the target three times in a row What is the probability that Craig only hits the target two times 0 0172 0 145152 0 3256

point Complete the table below giving the amount P that must be invested at interest rate 11 compounded weekly to obtain a balance of A 60000 in 1 years t 1 10 20 30 40 50 P

Mary needs to borrow 12 000 she can borrow the money at 6 simple interest for 3 yr or she can borrow at 4 with interest compounded continuously for yr a How much total interest would Mary pay at 6 simple interest b How much total interest would Mary pay at 4 interest compounded continuously c Which option results in less total interest Part 0 3 Part 1 of 3 a How much total interest would Hary pay at 6 simple interest At 6 simple interest the total interest Mary would pay is

problems From Example 2 3 Luisa Hernandez wants to invest 20 000 Which 4 year investment is the best deal a Compounded daily at 3 5 or compounded monthly at 3 75 PENUR b Compounded quarterly at 4 5 or compounded monthly at 4 25

1 Jerry has an insurance policy with a premium of 150 per month In June he causes an accident and receives a bill with a total cost of 6000 His deductible is 1500 and his coverage limit is 10 000 a How much money will Jerry have to pay for the accident s bill b How much total money will Jerry have to pay in the month of June

What is the monthly payment on a 30 year amortized loan with a fixed interest rate of 5 per year compounded monthly with a purchase price of 375 000 00 and a down payment of 15 Round your answer to the nearest cent

Please post a tentative solution to the problem below following the mortgage formula and using exponential equations and logarithms as appropriate to solve for time Mortgage Formula 1 1 nt M n Pn where P monthly payment r annual rate n number of payments per year typically 12 t years of mortgage Suppose you wanted to take out a mortgage for 100 000 with monthly payments at 9 but you can only afford 800 monthly payments How long will you have to make payments to pay off the mortgage How much interest would you pay for this period hint subtract the total amount paid over the time of the mortgage and the original mortgage amount

Complete the problem Check your answers in the back of the book 2 Elena and Arturo Sarmiento own 500 shares of Walgreens WAG stock After the quarterly dividends are reinvested under their dividend reinvestment program DRIP they own 501 055 shares WAG is selling at 45 00 a share Find a the annual dividend per share and b the annual yield for WAG

9 Duane Hartley owns 2 000 shares of Heban Oil stock which he purchased for 28 40 each Recently he read that the average selling price of his stock was 37 90 The company paid annual dividends of 1 80 per share last year a What is the annual yield on his stock b For an investor who purchased the stock at 37 90 per share what is the annual yield

For Problems 5 and 6 determine a the total annual dividend and b the annual yield to the nearest hundredth of a percent 5 Christine Gony owns 400 shares of QT Press Purchase price was 55 99 a share Dividends are 1 52 per share 6 Ella Franklin owns 325 shares of ITA stock Purchase price was 37 85 per share Dividends are 1 11 per share

For Problems 3 and 4 determine the annual yield to the nearest hundredth of a percent 3 You purchase TEK stock for 15 53 per share Dividends are 1 48 per share 4 You purchase CGW stock for 36 91 per share Dividends are 0 14 per share

Find the present value of an annuity due that pays 2000 at the beginning of each quarter for the next 5 years Assume that money is worth 6 6 compounded quarterly Round your answer to the nearest cent 2774 45 X

Damon is saving up money for a down payment on a house He currently has 4412 but knows he can get a loan at a lower interest rate if he can put down 5266 If he invests the 4412 in an account that earns 4 5 annually compounded monthly how long will it take Damon to accumulate the 5266 Round your answer to two decimal places if necessary

Assume that you are 23 years old and started saving for retirement on January 1 2023 You plan to retire on December 31 2067 when you are 68 years old There are 45 years from the time you started investing saving until you retire You have no previous or other retirement savings when you start to save Assume there are 365 days and 52 weeks in each year from 2023 to 2067 Ignore leap years Assume that taxes will not affect any of the amounts or your savings You invest 75 at the end of each week into a retirement account paying 7 5 compounded weekly from January 1 2023 until you retire Show all work and answer the following questions 1 Assuming no withdrawals or additional payments were made how much money will be in your retirement account after 45 years 2 Assuming you made all the weekly payments for45 years how much did you pay into your retirement account 3 Assuming you made all the weekly payments for 45 years how much interest did you earn over tho 15 voo

Assume that you are 23 years old but decide to wait before saving for retirement You decide to start saving later when you are 42 years old As a result you start saving on January 1 2042 You plan to retire on December 31 2067 when you are 68 years old There are 26 years from the time you started investing saving until you retire When you start investing in 2042 you have no previous or other retirement savings Assume there are 365 days and 52 weeks in each year from 2042 to 2067 Ignore leap years Assume that taxes will not affect any of the amounts or your savings You invest 125 at the end of each week into a retirement account paying 7 5 compounded weekly for 12 years starting on January 1 2042 After 12 years you do not make any more payments or withdrawals and leave the money in the retirement account until retirement Show all work and answer the following questions 1 Assuming no withdrawals or additional payments were made how much money will be in your retirement account after 12 years 2 After 12 years how many years are left until you retire 3 Assuming you made all the monthly payments for 12 years and left the money in the account without making any additional payments or withdrawals how much money will be in your retirement account when you retire after 26 years 4 Assuming you made all the monthly payments for 12 years and left the money in the account without making any additional payments or withdrawals how much did you pay into your retirement account over the 26 years 5 Assuming you made all the monthly payments for 12 years and left the money in the account without making any additional payments or withdrawals how much interest did you earn over the 26 years Enter the amounts from this strategy in Row 4 of the Comparison Table in Activity 3 of the Project Make sure you enter the amount available at retirement in Row 4

3 If 2000 is invested at an interes of 3 5 per year compounded continuously find the value of the investment after the your answers number of years Round given to the nearest cent A 3 years 1 B le years C 18 years

If you invest 4000 in an account that pays 6 con reach 6000 How much must you invest in an account today th 10 000 in the account 5 years from now

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Martha starts saving for her retirement by making monthly deposits into a retirement account whose annual rate is 3 7 She plans to retire in 23 years with an amount of money that has the same buying power as 298 759 has today If the anticipated rate of inflation if 3 how much should each of her deposits be Round your answer to the nearest dollar

ructions equation of the tangent line to a

Jack borrows 29 223 to pay for a car The loan carries an annual rate of 5 and he wants to be debt free in years by making biweekly payments 26 per year How much interest will he pay on this loan Round your answer to the nearest dollar

Carol borrows 32 549 to help pay for expenses The loan is for 5 years and carries an annual rate of 4 2 If she plans to make monthly payments how much will she still owe after 4 years Round your answer to the nearest dollar

9 The population of Hicksville TX was 10 412 in 1995 and has been growing at the rate of 12 5 per year In what year will the population top 20 000

2 How long will it take for 5000 to grow to 7500 if it earns 6 5 annual interest compounded weekly