Simple & Compound Interest Questions and Answers

The annual interest rate on a credit card is 13 99 If a payment of 400 00 is made each month how many months will it take to pay off an unpaid balance of 2 517 57 Assume that no new purchases are made with the credit card It will take months to pay off the unpaid balance Do not round until the final answer Then round up to the nearest integer as needed

A 57 year old couple is considering opening a business of their own They will either purchase an established Gift and Card Shoppe or open a new Wine Boutique The Gift Shoppe has a continuous income stream with an annual rate of flow at time t given by G t 39 900 dollars per year The Wine Boutique has a continuous income stream with a projected annual rate of flow at time t given by W t 19 000e0 08t dollars per year The initial investment is the same for both businesses and money is worth 10 compounded continuously Find the present value of each business over the next 8 years until the couple reaches age 65 to see which is the better buy Round your answers to the nearest dollar

Your parents are giving you 165 a month for 4 years while you are in college At an interest rate of 34 percent per month what are these payments worth to you when you first start college O 7 155 89 O 8 587 10 O 7 052 88 O 6 931 28 00

A young executive is going to purchase a vacation property for investment purposes She needs to borrow 80 000 00 for 30 years at 6 5 compounded monthly and will make monthly payments of 505 65 Round all answers to 2 decimal places What is the unpaid balance after 13 months During this time period how much interest did she pay

A weight loss clinic guarantees that its new customers will lose at least 5 lb by the end of their first month of participation or their money will be refunded If the loss of weight of customers at the end of their first month is normally distributed with a mean of 6 3 lb and a standard deviation of 0 81 lb find the percent of customers who will be able to claim a refund Click here to view page 1 of the standard normal distribution table Click here to view page 2 of the standard normal distribution table of customers will be able to claim a refund Round to the nearest tenth as needed

A man deposits 10 000 at the beginning of each year for 15 years in an account paying 7 compounded annually He then puts the total amount on deposit in another account paying 9 compounded semiannually for another 14 years Find the final amount on deposit after the entire 29 year period He will have a final amount of after the entire 29 year period Simplify your answer Do not round until the final answer Then round to the nearest cent as needed

Find the final amount in the following retirement account in which the rate of return on the account and the regular contribution change over time 1100 per quarter invested at 5 3 compounded quarterly for 14 years then 1600 per quarter invested at 5 6 compounded quarterly for 15 years O Find the final amount in the account Do not round until the final answer Then round to the nearest dollar as needed

Find the present value the amount that should be invested now to accumulate the following amount if the money is compounded as indicated 6200 at 9 compounded quarterly for 8 years The present value is Do not round until the final answer Then round to the nearest cent as needed

For the given corporate bond whose annual simple interest rate is provided find the semiannual simple interest payment and the total interest earned over the life of the bond Assume 365 days in a year 5600 Company A 30 year bond 6 218 The semiannual interest on the corporate bond is Round to the nearest cent as needed BOCCH

what is the maximum possible percentage return on an investment with 4 APR for 6 years plz shows the formula and steps

Jamie Tavare s bank granted him a 3 500 single payment loan for 80 days at 11 ordinary interest What is the loan s maturity value 2 points

Consider the Vertical Analysis for Moorhouse Inc. For the Inventories line, calculate the 2023 and 2022 percentages. Select the correct answer from the possible answers listed. 14.2% and 19.4% 18.7% and 15.1% 51.2% and 48.2% 12.8% and 13.9%

Question 9 A company is considering expanding their production capabilities with a new machine that costs $44,000 and has a projected lifespan of 6 years. They estimate the increased production will provide a constant $7,000 per year of additional income. Money can earn 0.9% per year, compounded continuously. Should the company buy the machine? Select an answer over the

John deposits $2600 into a 3-year CD earning 4.25% interest compounded daily. a. How much money will he have when the CD matures in 3 years? (2 points)

Larry and Peggy are making decisions about their bank accounts. Larry wants to deposit $350 as a principal amount, with an interest of 4% compounded quarterly. Peggy wants to deposit $350 as the principal amount, with an interest of 6% compounded monthly. Explain which method results in more money after 2 years. Show all work.

Suppose that $10,873 is invested at an interest rate of 5.9% per year, compounded continuously a) Find the exponential function that describes the amount in the account after time t, in years b) What is the balance after 1 year? 2 years? 5 years? 10 years? c) What is the doubling time?

Day AmountDayAmount Day Amount 10 1.00165 70 1.01157 130 1.02160 20 1.00329 80 1.01323 140 1.02328 30 1.00494 90 1.01490 150 1.02496 40 1.00660 100 1.01657 160 1.02665 50 1.00825 110 1.01825 170 1.02834 60 1.00991 120 1.01992 180 1.03002 You opened a savings account with a deposit of $3,200 at a 6% rate interest compounded daily. True or False: The amount in the account after 120 days if you made no other deposits or withdrawals is $3,362.74. True False

A car was originally purchased in January 2020 for 32,000 dollars. The car depreciates at a rate of 19% every year. Part A. Write a function that will represent the value of the car after n years. Part B. What will the value of the car be in 2030? Part C. When will the car be worth half of its original value? Show your work.

Day AmountDayAmountDay Amount 10 1.00165 70 1.01157 130 1.02160 20 1.00329 80 1.01323 140 1.02328 30 1.00494 90 1.01490 150 1.02496 40 1.00660 100 1.01657 160 1.02665 50 1.00825 110 1.01825 170 1.02834 60 1.00991 120 1.01992 180 1.03002 You opened a savings account with a deposit of $2,900 at a 6% interest rate compounded daily. True or False: The amount in the account after 100 days if you made no other deposits or withdrawals is $2,948.05. True False

Skylar invested $8,900 in an account paying an interest rate of 2.6% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 11 years?

Day AmountDayAmountDay Amount 10 1.0016570 1.01157 1301.02160 20 1.00329 80 1.013231401.02328 30 1.0049490 1.014901501.02496 40 1.00660 100 1.01657 160 1.02665 50 1.00825 110 1.01825 170 1.02834 60 1.009911201.01992180 1.03002 You opened a savings account with a deposit of $2,500 at a 6% interest rate compounded daily. True or False: The amount in the account after 80 days if you made no other deposits or withdrawals is $2,335.08. True False

Day AmountDayAmountDayAmount 10 1.00165 70 1.01157 130 1.02160 20 1.00329 80 1.01323 140 1.02328 30 1.0049490 1.01490 150 1.02496 40 1.00660 100 1.01657 160 1.02665 50 1.00825 110 1.01825 170 1.02834 60 1.00991 120 1.01992180 1.03002 You opened a savings account with a deposit of $2,000 at a 6% interest rate compounded daily. True or False: The amount in the account after 60 days if you made no other deposits or withdrawals is $2,901.82. True False

Ronnie has $500 he wants to put in a savings account that compounds monthly at a 1% interest rate. a) What is the initial amount? b) What is the interest rate in decimal form? c) What are the number of compounding periods in one year? d) Write an equation that can be used to find the amount, A, after t years. e) How long will it take for him to have $700 in his account?

Robin Smith bought a $150,000 home and applied for a 90% conventional loan at 9% with a 30 year term. The amortization factor is 8.05. 1. What is Robin's monthly payment of principal & interest?

Use the given formula to answer the question. A = P(1 + rt) is used to find the principal amount P deposited, earning r% interest, for t years. Use this to find what principal amount P David invested at a 4% rate for 10 yr if A = 14,000.

Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those presented here. For long-term loans, the differences may be pronounced. Assume that you take out a $2000 loan for 30 months at 8% APR. What is the monthly payment? (Round your answer to the nearest cent.)

You invested $5000 between two accounts paying 5% and 8% annual interest, respectively. If the total interest earned for the year was $340, how much was invested at each rate? $__ was invested at 5% and $ __ was invested at 8%.

An investment of $41,000 was made by a business club. The investment was split into three parts and lasted for one year. The first part of the investment earned 8% interest, the second 6%, and the third 9%. Total interest from the investments was $3270. The interest from the first investment was 3 times the interest from the second. Find the amounts of the three parts of the investment. The first part of the investment was $____ The second part of the investment was $____ The third part of the investment was $____

Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period. $77,000; money earns 5% compounded semiannually for 11 year O $1118.16 $2667.79 $2832.62 $2517.62

What is the interest earned if you deposit $9,500 and earn 5% interest for 9 months? $325.65 $356.25 365.35 355.55

True or False: If the unpaid balance is $2,100 and the interest rate is 10%, your final monthly payment is $2,310. True False

True or False: Your finance charge is $7.32 if you have an unpaid balance of $177.23 and the annual interest rate charge is 2.1% of the unpaid balance. True False

You take a 30-day single-payment loan with an interest rate of 21% on $550. What is the amount of the maturity value? $559.94 $569.44 $559.49 $519.69

True or False: Rounded to the nearest tenth, it would take 12.5 years for $1,250 to double if your simple interest rate is 8%. True False

What is the final monthly payment if the unpaid balance is $4,300 and the interest rate is 15%? $4,353.54 $4,534.45 $4,553.44 $4,355.65

True or False: If the unpaid balance is $2,980 and the interest rate is 11%, your final monthly payment is $3,310.72. True False

You put a $500 jacket on layaway and put down a 10% deposit. What was the deposit?

You put a $300 outfit on layaway and put down 20%. What is the balance? $225 $240 $235 $210

You take a 60-day single-payment loan with an interest rate of 14% on $815. What is the amount of the maturity value? $833.76 $842.33 $832.77 $836.67

Find the periodic withdrawals PMT for the annuity given. HINT [See Example 4.] (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $100,000 at 6%, paid out monthly for 12 years PMT =

Tom and Jerry make separate investments at the same time. Tom invests $2000 at an annual interest rate of 2% compounded continuously. Jerry invests $1800 at an annual rate of 2.5% compounded monthly. a.) Who has the most money after 15 years? Clearly show all work to support your answer. b.) How long will it take for Tom's investment to triple in value?

You deposit $4000 in an account earning 5% interest compounded monthly. How much will you have in the account in 15 years?

Dividend of a company A's stock is expected to increase every quarter @ 0.5% and the rate of return of stock is 7% annually and stock is paying dividend of $20 each quarterly. Find out the present worth of stock?

Use I = PRT to solve. (time is in years) | = $14,400 R = 8% Find P. T = 30 years

Suppose you want to have $600,000 for retirement in 25 years. Your account earns 8% interest. How much would you need to deposit in the account each month?

You deposit $400 each month into an account earning 2% interest compounded monthly. a) How much will you have in the account in 35 years? $ b) How much total money will you put into the account? $ c) How much total interest will you earn? $

Which of the following companies or industries are most likely to use process-costing rather than job-costing? (select all that apply) A company that hand-makes custom guitars A company that makes budget-priced plastic kayaks that are not customized in any way A public accounting firm performing audits A company that manufactures vast quantities of orange paint that is used for painting bridges A company that makes bulk chicken feed A company that makes custom furniture to customers exact requirements A company that makes one flavor of frozen pizzas

Liam has a remaining balance on his credit card of $800. His credit card has an APR of 22 percent. How much will he pay in interest in one month? a) $176.00 b)$16.00 c)$14.67 d)$22.00

Use the Fv formula for an ordinary annuity. Calculate the future value of $ 507 a month Payment: $507 APR: 8% Frequency: monthly Length of annuity: 40 years

An account is opened with an initial deposit of $11000 and earns 3% interest compounded monthly What will the account be worth in 5 years?