Simple & Compound Interest Questions and Answers

If 1000 is invested for x years at 12 compounded continuously the future value that results is S 1000e0 12x What amount will result in 4 years Round your answer to the nearest cent

You wish to retire in 30 years so you begin a 401K program and pay 150 into your account weekly at 7 35 interest Assume 401K is compounded weekly ordinary time 24 25 26 How much will you have when you retire How much did you pay into the annuity How much interest did you receive over the thirty years u want to save 600 000 dollars for retirement in your 401K Over the next 30 ars 27 28 29 30 How much must you deposit weekly if the annuity is paying 7 35 What will be your total payments into the annuity over the 30 year period How much interest did you earn while building your annuity You retire with 600 000 in your IRA which earns 7 35 What distribution would you receive monthly if you plan to withdraw funds for the next 25 years 2 543

A 7 500 CD is purchased through a local bank that pays 3 60 interest compounded quarterly for three 3 years Calculate the maturity value

p 16 100 r 7 t 1 years OA 112 700 OB 2 300 OC 112 7 OD 1 127

5 Homework Determine the month financed is 285 000 The monthly principa

Parents wish to have 80 000 available for a child s education If the child is now 2 years old how much money must be set aside at 3 compounded semiannually to meet their financial goal when the child is 18 iClick the icon to view some finance formulas The amount that should be set aside is Round up to the best Haller SERZET

A sofa regularly sells for 780 The sale price is 709 80 Find the percent decrease of the sale price from the regular price

You would like to have 72 000 available in 15 years There are two options Account A has a rate of 3 5 compounded once a year Account B has a rate of 3 compounded daily How much would you have to deposit in each account to reach your goal Click the icon to view some finance formulas You must invest 42977 in Account A Round up to the nearest dollar You must invest in Account B Round up to the nearest dollar C

Suppose that you borrow 1000 00 from a friend and promise to pay back 1645 00 in 3 years What simple interest rate will you pay The simple interest rate is Round to the nearest tenth as needed

Blossom Company has issued three different bonds during 2022 Interest is payable annually on each of these bonds 1 On January 1 2022 1 100 6 5 year 1 000 bonds dated January 1 2022 were issued at face value On July 1 875 000 7 5 year bonds dated July 1 2022 were issued at 101 3 On September 1 315 000 5 5 year bonds dated September 1 2022 were issued at 98 2 Prepare the journal entries to record each bond transaction at the date of issuance Credit account titles are automatically indented whe amount is entered Do not indent manually Record journal entries in the order presented in the problem Date Account Titles and Explanation Debit Credit

You hold an annual coupon bond for 1 year receiving the 0 105 coupon before selling When bought it had 15 years to maturity and the YTM was 0 125 Over the year interest rates ROSE by 0 006 What is the total holding period return for this investment 0 0801 O 0 0883 O 0 0916 9 0860

An exercise machine with an original price of 940 is on sale at 15 off a What is the discount amount b What is the exercise machine s sale price a discount amount

Consumer Price Index CPI is a measure of the change in the cost of goods over time The index was 100 for the three year period centered on 1983 For simplicity we will assume that the was exactly 100 in 1982 Then the CPI of 210 4 in 2006 indicates that an item that cost 1 00 in 1982 would cost 2 10 in 2006 The CPI has been increasing approximately linearly over the las decades a Use this information to determine an equation for the CPI in terms of t which represents the years since 1982 b Based on the answer to part a what was the predicted value of the CPI in 2000 Compare this estimate with the actual CPI of 181 7 c Describe the rate at which the annual CPI is changing a y t Round to the nearest tenth as needed b The predicted value of the CPI in 2000 was The estimated CPI is Round to the nearest tenth as needed c The CPI is increasing at the rate of per year Round to the nearest tenth as needed the actual CPI

Karim has decided to purchase a 22 000 car He plans on putting 20 down toward the purchase and financing the rest at 7 8 interest rate for 4 years Find his monthly payment

Consider an income stream of R t dollars per year earning interest at the rate of r per year compounded continuously The present value of the income stream R t over a term of T years is T R t e t dt PV When the interval of time is infinite we refer to the present value as the capital value of the income stream Notice that the integrand is a form of the continuous exponential model which can be used to model any type of continuous growth or decay depending on the sign of the exponent and is thus regarded as a common and widely applicable model 1 A company is considering expanding their production capabilities with a new machine that costs 95 000 and has a projected lifespan of 8 years They estimate the increased production will provide a constant 12 500 per year of additional income The income stream can earn 0 6 per year compounded continuously Should the company buy the machine 2 Suppose that an organization wants to establish a trust fund that will provide a contin uous income stream with an annual rate of flow at time t given by R t 10 000 If the interest rate remains at 8 compounded continuously find the capital value of the fund

Fiberia Accessories a clothing retailer is planning to introduce a new line of sweaters as part of the winter collection for 65 with an inventory of 1500 The main selling season is 60 days between November and December The store then sells the remaining units in a clearance sale at 65 percent discount Out of the 60 main retail days Fiberia sells the sweaters at full retail price for only 45 days while giving a discount of 25 percent for the remaining 15 days The linear demand functions a and b an given as 79 5 and 1 1 respectively 9 10 A B Marked Down Pricing Model for Fiberia Accessories s New Sweater Retail Price Inventory Selling Season Days Days at Full Retail 65 1 500 60 45 25 Immediate Markdown Clearance Markdown 65 Demand Function a bP O 17 105 16 Calculate the revenue for the clearance sales period O 48 871 88 0 b O 18 921 09 79 5 1 1

4 How long will it take the money to triple itself if invested at 10 compounded semi annually 5 In how many years is required for 2 000 Php to increase by 3 000 Php if interest is at 12 is compounded semi annually

The table below shows a summary of Henry s credit card statement for the month of October Transaction types Amount Unpaid balance from September Beginning balance on October 1 1986 03 Purchases made during the month of October 204 75 Payments made during the month of October 346 70 Complete the parts below Write your answer to the nearest cent a Suppose the credit card company charges 1 7 monthly interest on the unpaid balance from September How much interest will this be b What will Henry s unpaid balance be on his November 1 statement Assume that this balance will include the interest from part a but will not include any interest on his October balance yet

Which two economic systems are mixed to form a welfare state Capitalism and Socialism Communism and Capitalism O Command and Socialism O Communism and Socialism

An entrepreneur is a type of French business organization imported into the U S O a hierarchal chain of command O an individual who takes risks in hopes of gaining profits an individual who is employed by another as a manager

Current Attempt in Progress Your answer is partially correct Pottery Ranch Inc has been manufacturing its own and variable manufacturing overhead is charged to labor cost per unit to make a pair finials are 4 ar A supplier offers to make a pair of finials at a price manufacturing costs will be eliminated but the 43 have to be absorbed by other products a Prepare the incremental analysis for the decision to the number eg 45 or parentheses eg 45 Direct materials Make

Taxes are used for which of the two major categories relating to income redistribution Defense and social insurance Social insurance and public assistance programs Defense and public assistance programs Education and defense

How does the federal government raise money to cover budget deficits By borrowing from the Federal Reserve Bank O By mandating new taxes to the state governments O By cutting all federal social programs By issuing new securities such as Treasury bills and bonds

Choose the correct answer The rate banks charge each other for short term loans is called the O discount rate O prime rate O federal funds rate O open market rate

Question 10 Which controls the discount rate reserve requirements and open market operations in the United States FOMC OFMOC FOCM Points 1 O FCMO

rk Ques buying a house selling for 225 000 To obtain the mortgag ck the icon to view the table of monthly payments rmine the amount of the required down payment ermine the amount of the mortgage ermine the monthly payment for principal and interest etermine the amount of the required down payment

omework aspx homeworkId 6441 Online Class 382 negotiating with two banks for a mortga points to be paid at the time of closing

Homework aspx homeworkld 64411 Online Class 382 a house selling for 225 000 To obtain con to view the table of monthly paymen

work nine the monthly principal an ed is 85 000 and the annual

You have 94 000 you would like to invest in three different stocks MarkyB Inc JohnJohn Ltd and Garretts Spaghetti House You would like to invest no more than 19 000 in Garretts Spaghetti House and you want the amount you invest in MarkyD Inc to be at least the amount invested in JohnJohn Ltd and Garretts Spaghetti House combined If MarkyB Inc earns 18 annual interest JohnJohn Ltd earns 13 annual interest and Garretts Spaghetti House earns 6 annual interest how much money in dollars should you invest in each stock to maximize your annual interest earned What is the maximum annual interest earned Into Marky Inc Into JohnJohn Ltd and Into Garretts Spaghetti House which will give you give you maximum annual You should invest s Interest

The rate of inflation for 2018 was 2 4 Did the price of Arizona Diamondbacks tickets exceed the inflation rate Explain Round percent to nearest tenth Diamondbacks tickets 2017 19 16 Diamondbacks tickets 2018 19 66

tion 10 4 Homework K Jamie needs a new roof on her 30 monthly payments of 156 a What finance charge will Ja b What is the APR to the near

work Questi Pa don Wallin is an auto mechanic who wish nce the purchase with a 60 month fixed i Determine Landon s finance charge Determine Landon s monthly payment Click the icon to view the partial APR ta

Use PMT P 15 to determine the regular payment amount rounded to the nearest dollar In terms of paying less in interest which is more economical for a 230 000 mortgage a 30 year fixed rate at 7 or a 20 year fixed rate at 6 5 How much is saved in interest Select the correct choice below and fill in the answer box within your choice Do not round until the final answer Then round to the nearest thousand dollars O A The 20 year 6 5 loan is more economical The buyer will save approximately in interest OB The 30 year 7 loan is more economical The buyer will save approximately in interest

lework Question Part 1 ack Fitzgerald wishes to purchase a used car th 12 000 The installment terms include a down p opte of 220

I Mode Live Online Class 382 nework ack Fitzgerald wishes to purchase a used car th erms include a down payment of 3 000 and 48 What finance charge will Jack pay What is the APR to the nearest half percent

al Arts II Mode Live Online Class 38 4 Homework Landon Wallin is an auto mechani installment loan with an APR of 5

Il Mode Live Online Class 382 mework Jamie needs a new roof on her house a What finance charge will Jamie pay

900 9 12 Click the icon to view the partial APR ta monthly payment is und to the nearest cent as needed

sh in saving and checking accounts tificates of deposits that originally maturing in 18 mont quired much should Blakely report as cash and equivalents o

Considering the following 13 year semiannual bond 0 105 coupon 867 current price Par is 1000 What is the YTM O 0 0984 0 1197 O 0 1261 01135

Cook Security Systems has a 37 500 line of credit which charges an annual percentage rate of prime rate plus 4 The starting balance on October 1 was 9 100 On October 4 they made a payment of 1 600 On October 13 the business borrowed 2 100 and on October 19 they borrowed 4 200 If the current prime rate is 6 what is the new balance in Round your answer to the nearest cent

SHOW Solution type your work for Consider these Make or Buy alternatives Make Annual fixed cost rent capital is 2000 Unit variable cost labor material transportation is 10 raft Sales price is 20 raft Buy Annual fixed costs is 9000 Unit variable cost is 5 raft Sales price is 20 raft How many rafts must be sold to breakeven for MAKE alternative and how much revenue they make at this quantity Show your solution below with all labels and units

B C D Jimbo s Factory is considering some new equipment whose data are shown below Th over 3 years but it would have a positive pre tax salvage value at the end of Year 3 w required but it would be recovered at the end of the project s life Revenues and oth NPV The project s information is provided for you in the range C13 D20 Fill in the project s cash flows in the empty cell boxes Don t forget to enter the annual depreciation in cell D22 and please calculate the NPV WACC Net investment in fixed assets depreciable basis Required net operating working capital Straight line depreciation rate 10 00 70 000 10 000 33 33

Michael Jordan s rookie salary in 1984 was 550 000 The CPI in 1984 was 103 9 while the CPI in 2010 was 218 1 What is Michael Jordan s rookie salary in 2010 dollars Edit View Insert Format Tools Table

Question 8 5 3 15 e payment size is points O Points 0 of 1 nd the amount of each payment to be made into a sinking fund which earns 5 compounded que oduces 47 000 at the end of 3 5 years Payments are made at the end of each period Do not round until the final answer Then round to the nearest cent

of deposit paying 6 interest compounded monthly How much will you have in the account after 20 years This is the same question as Question 13 Upload your work showing the steps you used to solve this problem Don t forget your dollar signs in your final answer Round numbers at the very end Round to the nearest cent Include 2 decimal places in your final answer

The number of employees working in a farm is increased by 25 and the wages per head are decreased by 25 If the results in x NIQUE STUDY CIRCLE

PRICE 89822226 50 45 40 35 30 25 20 15 10 5 Supply to Figure 4 7 Equilibrium price and quantity are respectively 15 and 200 units 35 and 200 units 25 and 400 units 25 and 600 units Demand 100 200 300 400 500 600 700 800 900 1000 QUANTITY

3 Throughout life he constantly used waterc a studies b reproductions c scenes d paintings 4 Let me give advice don t marr