Simple & Compound Interest Questions and Answers

A house was valued at 120 000 in the year 1985 The value appreciated to 145 000 by the year 2003 A What was the annual growth rate between 1985 and 2003 Round the growth rate to 4 decimal places B What is the correct answer to part A written in percentage form 96 C Assume that the house value continues to grow by the same percentage What will the value equal in the year 2006 value Round to the nearest thousand dollars

3 Car Depreciation If Carlos buys an expensive electric car for 89 990 After driving it for 2 years he wants to sell it That model depreciates 18 5 every year a What is its depreciated value at the end of 2 years b After how many years the car will be worth 30 000

Fatuma invests 18 000 at 6 simple interest for 1 year How much is in the account at the end of the 1 year period Answer

Suppose you want to have 600 000 for retirement in 35 years Your account earns 5 interest a How much would you need to deposit in the account each month b How much interest will you earn

You deposit 400 each month into an account earning 8 interest compounded monthly a How much will you have in the account in 15 years b How much total money will you put into the account c How much total interest will you earn

Kristina invests 15 000 at 15 simple interest for year How much is in the account at the end of the 1 year period Answer

mine the due date of the loan pril 24 for 120 days Click the icon to view a table of ue date of the loan is

The simple interest is Do not round until the fina

write an expression involving logarithms that gives the time t that it takes 1725 to double if it is invested at 10 interest compounded continuously

5 ts Book Hint Exercise 2 20A Algo Unearned revenue and the fina Clark Bell started a personal financial planning business when he ac financial assets of a large estate Bell agreed to manage the estate f Required a Show the effects of the advance payment and revenue recognitio model like the following one In the Cash Flows column use OA t financing activity and NC for net change in cash If the account is How much revenue would Bell recognize on the Year 2 Income s c What is the amount of cash flow from operating activities In Year

Exam 1 Ch 1 3 1 6 TB MC Qu 02 60 Algo Revenue on a Revenue on account amounted to 4 800 Cash c salaries accrued at the end of the year was 1 200

Kennedy is going to invest in an account paying an interest rate of 4 compounded quarterly How much would Kennedy need to invest to the nearest dollar for the value of the account to reach 2 800 in 10 years

A farmer purchased 285 acres of land for 4 300 acre He paid 25 down and obtained a loan for the balance at 6 75 APR over a 20 year period How much is the annual payment Simplify your answer completely Round your answer to the nearest cent

individual is 43 years old At the end of each month he deposits 260 in a retirement account that erest compounded monthly After 12 years what is the value of the account If no further deposits or withdrawals are made to the account what is the value of the account whe ches age 65 For the first 12 years the individual s deposits form an account Points 0 of 3 of each period Therefore the formula F to behave as an annuity a because the deposits are ordinary annuity annuity due should be used uld be used

You have a loan outstanding It requires making eight annual payments of 7 000 each at the end of the next eight years Your bank has offered to allow you to skip making the next seven payments in lieu of making one large payment at the end of the loan s term in eight years If the interest rate on the loan is 7 what final payment will the bank require you to make so that it is indifferent to the two forms of payment The final payment the han

Question 10 5 2 47 BE points O Points 0 of 2 son wants to invest 17 000 for 3 years and is considering two different investments The first inv ey market fund pays a guaranteed 5 7 interest compounded daily The second investment a trea annual interest Which investment pays the most interest over the 3 year period t the correct choice below and if necessary fill in any answer box es to complete your choice ot round until the final answer Then round to the nearest cent as needed The treasury note is the better investment since the market fund produces in interest and note pays in interest Both the market fund and the treasury note produce the same interest with S The market fund is the better investment since the market fund produces in interest and 1 note pays in interest

nd the compound amount and the amount of interest earned by the deposit b 000 at 5 21 compounded continuously for 2 years hat is the compound amount 962 23 o not round until the final answer Then round to the nearest cent

A company has agreed to pay 4 7 million in 6 years to settle a lawsuit How much must it invest in an account paying 9 annual inte monthly to have that amount when it is due What is the interest rate per period Type an integer or decimal rounded to four decimal places as needed

Suppose Petrick Goldsmith deposited 1000 simple interest at an Quarterly account anual rate of 7 and left there for 2 years At the end of 2 years patrick deposited the entire amount from that account inte that earned compounded in this account for 8 years How much a new the m He left the account in money that earned

Question 12 of 21 Month The controller of Sheridan Industries ha maintenance costs January February March Total Maintenance Costs 2 930 3 230 3 830

Current Attempt in Progress Family Furniture Corporation incurred the following costs Identify the costs as variable fixed or mixed 1 2 3 Straight line depreciation on factory building Wood used in the production of furniture 4 Screws used in the production of furniture 6 Fuel used in delivery trucks 5 Sales staff salaries 8 7 Property taxes Sales commissions 11 Insurance on buildings 9 Hourly wages of furniture craftsmen 10 Salaries of factory supervisors Utilities expense

X 1 Topic Learning Unit 1 Discussion x Coc 44695 discussion topics

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Show the answer in two ways using the formula and also writing the Google Sheet command you would use 1 Nico invests 7 500 into an account that has an annual interest rate of 6 5 The interest is compounding monthly Twenty years later what is the account balance 2 pts

What is the effective interest rate for 7 5 interest compounded quarterly

Find the lemeth of side x in sinplest radieal form with a rational denonsitator

If in a monopoly market the demand function for a product is p 160 0 80x and the revenue function is R px where x is the number of units sold and p is the price per unit what price will maximize revenue

Points 0 of 2 What was the interest rate An account invested in a money market fund grew from 73 366 45 to 73 660 89 in a month What was the interes rate to the nearest tenth Save Do not round until the final answer Then round to the nearest tenth as needed

Suppose a company has fixed costs of 35 200 and variable cost per unit of 4 9 x 222 dollars where x is the total number of units produced Suppose further that the selling price of its product is 1354 59 x dollars per unit a Find the break even points Enter your answers as a comma separated list x b Find the maximum revenue Round your answer to the nearest cent c Form the profit function P x from the cost and revenue functions P x Find maximum profit d What price will maximize the profit Round your answer to the nearest cent

Date Period Compound Interest and the Number e We can modify the exponential growth and decay model in order to compound interest more often In other words rather than collecting the interest on the account one time per year it can be be collected more often This is called compound interest The most common compounding frequencies are semiannually twice per year quarterly four times per year and monthly twelve times per year Use the modified form of the formula shown below growth rate Example Name A P 1 1 10 21 principle starting amount nt time in years number of times compounded per year If you invest 6 000 in an account earning 8 interest compounded semiannually how much money will be in the account after 10 years 0 08 2 10 2 Example How much money will be in an account after 12 years if the original balance was 4525 and it earned 7 annual interest compounded continuously A 6000 A 6000 1 0 04 20 A 6000 1 04 20 A 6000 2 191123143 A 13146 738858 A 13 146 74 We can also compound interest continuously in other words the interest is compounded an infinite number of times per year As we compound the interest more frequently we approach the value of e which is a number that is kind of like pi in that it is a non repeating non terminating decimal It is approximately 2 7182818285 If you look at your calculator you should see an e key or an e key On Desmos the e key is found on the abc keyboard To use e we use the formula A Pet Remember we only use this formula when we are compounding continuously A 4525e 0 07 12 A 4525e0 84 A A 10481 56057002 A 10 481 56 11 plug values into formula 4525 2 3163669768 multiply exponents and divide growth rate addition inside parentheses raise 1 04 to the 20th power mutiply round appropriately plug values into formula multiply exponents raise e to the 0 84 exponent multiply round your answer appropriately Using the correct formula solve each of the problems below 1 Find the balance of the account after 6 years if Brenda invests 4 848 in a savings account with a fixed annual interest rate of 5 compounded semiannually 2 Suppose you make an investment of 21 000 at 13 6 interest compounded quarterly for 4 years What is the balance at the end of the 4 years 3 Kimi opens a bank account with 4 000 The account earns 3 interest compounded continuously How much money will be in the account after 15 years 4 Dash invested 10 000 at 4 interest compounded continuously How much money will he have after 8 years 5 Jimmy inherited an investment account valued at 8 739 He knows that the account earned 7 interest compounded monthly and that the account in exactly 8 years old He wants to know how much money was originally invested in the account Find this value

Kristen owns 61 shares of Prince Waste Collection and 45 shares of Nar Heating Cooling Nar Heating Cooling is wort 7 88 per share and Prince Waste Collection is worth 16 59 per share If Kristen sells all of her stocks how much money will she receive a 657 39 b 1 366 59 c 1 227 23 d 1 296 91

You have a savings account which earns 3 annual interest How much should you put into the account so that it will be worth 700 in 10 years In addition to giving the final answer also give the equation used to calculate this answer with all appropriate values plugged in

Here are selected data for Wilson Company Estimated manufacturing overhead Estimated labor hours Actual direct labor hours Estimated direct labor cost Actual direct labor cost Factory depreciation

Anna invested 69 000 in an account paying an interest rate of 83 compounded continuously Hudson invested 69 000 in an account paying an interest rate of 8 compounded daily After 10 years how much more money would Anna have in her account than Hudson to the nearest dollar

Jayden invested 65 000 in an account paying an interest rate of 2 1 compounded quarterly Assuming no deposits or withdrawals are made how much money to the nearest ten dollars would be in the account after 7 years

Frequency of Compounding and APY We ve seen that the frequency of compounding can have a significant effect on the overall interest accumulated Let s take a deeper dive by calculating the APY of the same situation using different compounding periods Scenario Alonso bought a 3 000 gaming computer using his credit card A special financing offer allows him to make no payments for 2 years but interest will still accrue at a rate of 16 92 APR and be added to the bill if he doesn t pay full balance in 2 years 1 Use the compound interest formula to calculate Alonso s balance after 2 years using each compounding period assuming he makes no payments Write your answer in the Account Balance column Compounding Period nobirt over betwo Yearly Semiannually Monthly ibnupo Daily Account Balance after 2 years 1 2 A 3000 1 A 4 101 09 0 1692 virbnom bebras A baaltavi

Determine the coordinates of the point of intersection of the two lines y 1 4a y 3 2x The point of intersection is

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Question 7 aduation is 3 year certificate of de oney for your trip

4 20 5 20 answere Question 9 deposit 5000 in an a Fount in 5 years

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19 800 is invested at a rate of 9 8 per year compounded 4 times per year In addition regular payments of 100 are made at the end of each compounding period What is the future value of this account after 30 years Answer 1 M Hint Imagine this as two separate investments How much will you have all together in 30 years

Engineers earns between 85 000 and 92 000 per year If the income tax is 6 what is the least amount of tax they would pay

Camilla took a 23 500 secured auto loan that allows her to make no payments for 18 months If interest is still compounded monthly at a rate of 6 3 what will her balance be in 18 months when she starts making payments

P 8 500 r 3 175 Compounded monthly for 10 years

An inspector of weights and measures uses a special set of weights to check the accuracy of scales Various weights are placed on a scale to check accuracy of any amount from 1 oz through 15 oz What is the fewest number of weights the inspector needs What weights are needed to check the accuracy of scales from 1 oz through 15 oz From 1 oz through 31 oz Discuss the pattern forming here and find possible extensions What is the fewest number of weights the inspector needs and what weights are needed to check the accuracy of scales from 1 oz through 15 oz The inspector needs weights He needs weights that measure OZ Type whole numbers Use a comma to separate answers as needed

a Hypothesis After scientists develop a question the next step is to try to answer this question by proposing an explanation A hypothesis is a proposed explanation for an event which can be tested Consider the scenario with your flashlight An appropriate question regarding this dilemma is Is my flashlight not working because the batteries are dead Thus a hypothesis that attempts to answer this question would be My flashlight is not working because the batteries are dead This statement suggests a reason your flashlight isn t working faulty batteries For a hypothesis to be considered useful it must be both testable and falsifiable It must be possible that the results obtained do not support the hypothesis If this is not the case then the hypothesis is not suitable since it is not falsifiable In our flashlight example we could design an experiment where we compare the ability of the old batteries the one originally in the flashlight and some new ones If the flashlight does not work with the old batteries or the new ones then the hypothesis can be proven false Please bear in mind however even though a hypothesis can be falsified it can never be proven true The data collected from one single experiment can only support that hypothesis In the flashlight and battery experiment if we observed that the new batteries caused the flashlight to work but the old batteries did not this result does not prove that the flashlight was not working because of faulty batteries Other factors need to be excluded before we can confirm this For example there is the possibility that the old batteries were not properly placed in the flashlight which caused it not to work Thus the findings with the new battery only supports our hypothesis until more evidence is obtained by conducting more experiments in the future to further confirm this finding or to falsify our hypothesis It is also important to remember that even though a hypothesis might be supported today based on the testing methods we possess currently this hypothesis may be modified with the development of new experimental techniques which can provide us with more understanding of a phenomenon in the future For example scientists were previously limited in their understanding of the components of the cell membrane However with the advent of the electron microscope our understanding of the membrane structure has increased significantly Thus earlier hypotheses related to this structure have been falsified or modified to accommodate new scientific findings This is what makes the process of scientific inquiry dynamic 2 Consider the following questions and write a proposed explanation a hypothesis for each question Note the hypothesis should be testable and falsifiable a Does fortified bird food affect the ability of pigeons to reproduce b Does vitamin C reduce the appearance of wrinkles in women over 40 years c Does taking a Kaplan course affect the SAT scores of high school students

A lender loans 10 000 now and X 4 years from now The loan is repaid at the end of 12 years with a single payment of 48 000 The interest rate on the loan is an annual effective interest rate of 10 for the first 7 years Thereafter the interest is charged at a force of interest of Calculate X O a 4 622 1109 O b 8 535 2355 O c 1 743 7404 O d 8 542 4281 e 6 581 6204 P 1 2 1 127

to buy a new laptop at the 5th year end and 1 000 to buy a new phonne at the 6th year end Please calculate how much you need to save in each year Suppose you deposit in the beginning of each year Suppose your last deposit is in the beginning of year 6 GOALS 1 Use SOLVER to find the required deposit amount 2 Use PMT to find the required deposit amount Interest rate Annual deposit year 1 2 34 8 year beginning balance before deposit withdrawal Deposit or withdrawal at beginning of year Total year end balance

with the correct showing the allot bal and interest rate mort at the initiation of d for the purpose and or property Round all monetary answ cent unless directed other Monthly Payment on a Fixed payment needed to amor fixed rate mortgage Use formula or Table 6 as a 7 Loan Amount Int 100 000 23 000