Simple & Compound Interest Questions and Answers

For a car loan of 17 500 at 5 2 for 5 years what would be typed into excel to find the monthly payment

Use the formula above to determine the accumulated amount for each of the following different scenarios Round solutions to the nearest cent Assume there are 365 days in a year If 37 000 is invested for 13 years and earns 6 5 interest compounded annually the accumulated amount is A If 37 000 is invested for 13 years and earns 6 5 interest compounded semi annually the accumulated amount is A If 37 000 is invested for 13 years and earns 6 5 interest compounded quarterly the accumulated amount is A If 37 000 is invested for 13 years and earns 6 5 interest compounded monthly the accumulated amount is A If 37 000 is invested for 13 years and earns 6 5 interest compounded daily the accumulated amount is A If 537 000 is invested for 13 years and earns 6 5 interest compounded continuously the accumulated

Many tax preparation organizations will prepay customers tax refunds if they pay a one time finance charge In essence the customer is borrowing the money the refund minus the finance charge from the tax preparer prepaying the interest as in a discount note and then repaying the loan with the tax refund This procedure allow customers access to their tax refund money without having to wait Joy had a tax refund of 742 77 due She was able to get her tax refund immediately by paying a finance charge of 40 36 What annual simple interest rate is paying for this loan assuming the following are true Assume 360 days in a year a The tax refund check would be available in 5 days b The tax refund check would be available in 10 days c The tax refund check would be available in 20 days a The annual simple interest rate is about Type an integer or decimal rounded to the nearest hundredth as needed

A country s population in millions and the growth rate in 2015 are given below Use this information and an exponential model to estimate the country s population in the specified year population 241 million growth rate 0 85 year 2031 The country s population in 2031 will be million Round to the nearest hundredth as needed

Check my work Manuel Company predicts it will operate at 80 of its productive capacity Its overhead allocation base is DLH and its standard amount per allocation base is 0 5 DLH per unit The company reports the following for this period Production in units Overhead Variable overhead Fixed overhead Total overhead Flexible Budget at 80 Capacity 53 250 292 875 53 250 346 125 Required 1 Required 2 Actual Results 49 200 347 900 1 Compute the overhead volume variance Indicate variance as favorable or unfavorable 2 Compute the overhead controllable variance Indicate variance as favorable or unfavorable Complete this question by entering your answers in the tabs below Compute the overhead controllable variance Indicate variance as favorable or unfavorable Note Indicate the effect of the variance by selecting favorable unfavorable or no variance Controllable variance

10 1 of 2 s Book Hint Print rences Required information The following information applies to the questions displayed below Manuel Company predicts it will operate at 80 of its productive capacity Its overhead allocation base is DLH and its standard amount per allocation base is 0 5 DLH per unit The company reports the following for this period Production in units Overhead Variable overhead Fixed overhead Total overhead Flexible Budget at 80 Capacity 53 250 1 Standard overhead rate 2 Standard overhead applied 3 Overhead variance 292 875 53 250 346 125 Actual Results 49 200 Check my work 347 900 1 Compute the standard overhead rate Hint Standard allocation base at 80 capacity is 26 625 DLH computed as 53 250 units x 0 5 DLH per unit 2 Compute the standard overhead applied 3 Compute the total overhead variance Note Indicate the effect of the variance by selecting favorable unfavorable or no variance marks Bookma

UNIT II For the 25 years I will be depositing 250 00 a month into an account earning 3 5 compounded monthly 3 How much money have I deposited over the 25 years Show all work

Use the compound interest formula to compute the future value of the investment Round to the nearest cent 1 500 at 2 compounded monthly for 6 months OA 1 514 93 OB 1 515 06 OC 1 689 24 OD 1 501 25

4 Many years ago I was fortunate enough to buy some savings bonds that appreciated at 4 per year a I bought one bond in 2000 for 50 How much is it worth today 2023 Write and solve an equation 3 points

If 15 000 is invested at 12 interest compounded quarterly find the interest earned in 13 years

How many years will it take for an initial investment of 20 000 to grow to 70 000 Assume a rate of interest of 2 compounded continuously It will take about years for the investment to grow to 70 000 Round to two decimal places as needed

Tritium is a radioactive isotope of hydrogen that has the desirable characteristic of radioluminescence which allows it to glow in the dark without the need for an external light source Thus tritium filled tubes are often used for applications such as airplane cockpit instrument dials watch hands and emergency lighting The half life of tritium is 12 32 years Suppose you recently purchased a premium watch with tritium hands How many years will it take for the watch hands to lose 95 6 of their original brightness Round your solution to the nearest year years

Your dad mentioned that he had 100 000 in his retirement account 20 years ago If the account has grown by the market rate of 10 per year by how much would the account have grown O 276 980 379 098 O 572 750 890 076

3 The value in millions of dollars of transactions processed by an online payment platform is modeled by the function M The value is expected to increase by 6 1 each year At time t 0 54 million dollars of transactions were processed Write the equation of a function M t that represents this situation ins last

4 Saving to open a business Madeline feels trapped in her current job and decides to save 75 000 over the next 7 yr to open up a Harley Davidson franchise To this end she invests 145 every week in an account paying 7 interest compounded weekly a Is this weekly amount sufficient to help her meet the 7 yr goal b If not find the minimum amount she needs to deposit each week that will enable her to meet this goal in 7 yr

The value of a particular investment follows a pattern of exponential growth In the year 2000 you invested money in a money market account The value of your investment t years after 2000 is given by the exponential growth model A 5 40000 nitially invest in the account OA 2 700 O B 297 OC 5 400 O D 5 705

A couple buys a 150000 home making a down payment of 15 The couple finances the purchase with a 15 year mortgage at an annual rate of 3 81 If the couple decides to increase the monthly payment to 1000 find the number of payments

6 3 points Sunn Company manufactures a single product that sells for 104 per unit and whose variable costs are 127 per unit The company s annual fixed costs are 622 000 The sales manager predicts that next year s annual sales of the company s product will be 39 200 units at a price of 192 per unit Variable costs are predicted to increase to 132 per unit but fixed costs will remain at 622 000 What amount of income can the company expect to earn under these predicted changes Prepare a contribution margin income statement for the next year Answer is complete but not entirely correct SUNN COMPANY Contribution Margin Income Statement por Sales Variable costs Contribution margin Fixed costs Income Units unit 192 132 132 X 39 200 39 200 39 200 Return to question 7 526 400 5 174 400 2 352 000 622 000 2 974 000

A company must pay a 309000 settlement in 3 years a What amount must be deposited now at compounded semiannually to have enough money for the settlement b How much interest will be earned c Suppose the company can deposit now in an account that pays interest continuously What interest rate would they need to accumulate the entire in years

2 7 pts You invested 37 000 in Yug Industries at an annual interest rate of 5 compounded continuously Find the amount received after a six year investment Don t forget to show your work Round your answer to the nearest cent COLLEGE

Suppose that 5000 is placed in a savings account at an annual rate of 6 compounded monthly Assuming that no withdrawals are made how long will it take for the account to grow to 8030 Do not round any intermediate computations and round your answer to the nearest hundredth years

A new employee charged 8040 on his credit card to relocate for his first job After noticing that the interest rate for his balance was 27 compounded monthly he stopped charging on that account He wishes to pay off his balance in 3 years using automatic payments sent at the end of each month a What monthly payment must he make to pay off the account at the end of 3 years b How much total interest will he have paid a What monthly payment must he make to pay off the account at the end of 3 years S Round to the nearest cent as needed b How much total interest will he have paid S Round to the nearest cent as needed

Suppose that an insurance agent offers you a policy that will provide you with a yearly income of 80 000 in 30 years What is the comparable salary today assuming an inflation rate of 4 compounded annually Round your answer to the nearest cent

Suppose you see a car with an advertised price of 14 700 at 410 83 per month for 4 years What is the amount of interest paid Round your answer to the nearest cent

Find the present value using the present value formula and a calculator Round your answer to the nearest cent Hint Use a 365 day year when compounding continuously Achieve 225 500 at 8 95 compounded continuously for 8 years 155 days

How much would you have in 6 years if you purchased a 1 000 6 year savings certificate that paid 4 compounded quarterly Round your answer to the nearest cent

If Rita receives 44 54 interest for a deposit earning 6 simple interest for 70 days what is the amount of her deposit Round your answer to the nearest cent 3870 74 X

Disposal of fixed asset Equipment acquired on January 6 at a cost of 187 700 has an estimated useful life of 8 years and an estimated residual value of 24 500 a What was the annual amount of depreciation for Years 1 3 using the straight line method of depreciation Year Depreciation Expense Year 1 20 400 V Year 2 20 400 Year 3 20 400 b What was the book value of the equipment on January 1 of Year 4 126 500 Feedback Check My Work c Assuming that the equipment was sold on January 3 of Year 4 for 120 200 Journalize the entry to record the sale If an amount box does not require an entry leave it blank January 3 Cash Accumulated Depreciation Equipment Loss on Sale of Equipment Equipment Feedback Check My Work 120 200 61 200 6 300 187 700 d Assuming that the equipment had been sold on January 3 of Year 4 for 129 000 instead of 120 200 journalize the entry to record the sale If an amount box does not require an entry leave it

Dexter Industries purchased packaging equipment on January 8 for 81 900 The equipment was expected to have a useful life of 3 years or 20 000 operating hours an a residual value of 4 500 The equipment was used for 7 600 hours during Year 1 6 000 hours in Year 2 and 6 400 hours in Year 3 Required 1 Determine the amount of depreciation expense for the 3 years ending December 31 by a the straight line method b the units of activity method and c the double declining balance method Also determine the total depreciation expense for the 3 years by each method Do not round intermediate calculations when determining the depreciation rate Round the final answers for each year to the nearest whole dollar Depreciation Expense Units of Activity Method Straight Line Method Year Year 1 Year 2 Year 3 Total 2 What method yields the highest depreciation expense for Year 1 Double declining balance method Double Declining Balance Method the most depreciation over the 3 year life of the equipment

Straight line depreciation A refrigerator used by a wholesale warehouse has a cost of 83 700 an estimated residual value of 6 900 and an estimated useful life of 8 years What is the amount of the annual depreciation computed by the straight line method

Depreciation by units of activity method A diesel powered tractor with a cost of 250 040 and an estimated residual value of 4 400 is expected to have a useful operating life of 89 000 hours During April the tractor was operated 100 hours Determine the depreciation for the month If required carry out any division to two decimal places

Partial year depreciation Equipment acquired at a cost of 71 000 has an estimated residual value of 4 000 and an estimated useful life of 10 years It was placed in service on October 1 of the current fiscal year which ends on December 31 When required round your answers to two decimal places a Determine the depreciation for the current fiscal year and for the following fiscal year by the straight line method Year 1 Year 2 Year 1 Depreciation b Determine the depreciation for the current fiscal year and for the following fiscal year by the double declining balance method Year 2 Depreciation

Equipment was acquired at the beginning of the year at a cost of 41 250 The equipment was depreciated using the double declining balance method based or estimated useful life of ten years and an estimated residual value of 800 a What was the depreciation for the first year b Assuming the equipment was sold at the end of year 2 for 9 530 determine the gain or loss on the sale of the equipment Loss Feedback Check My Work c Journalize the entry on December 31 to record the sale If an amount box does not require an entry leave it blank December 31 Cash Accumulated Depreciation Equipment Loss on Sale of Four

The price of a home is 270 000 The bank requires a 5 down payment The home is financed with a 20 year mortgage at 7 Payment 172 nxt 1 1 1 11 Find a down payment b amount of mortgage c monthly payment d total cost of interest over 20 years Round answers to the nearest cent a down payment 13 500 b amount of mortgage 256 500 c monthly payment 1988 64 d total cost of interest over 20 years 477273 60 a down payment 13 500 b amount of mortgage 256 500 c monthly payment 624 04 d total cost of interest over 20 years 477273 60 a down payment 13 500

A line passes through point 4 2 and has a slope of 2 Write an equation in Ax By C form for this line Use integers for A B and C

A 380 000 home mortgage with a rate of 2 5 compounded continuously is borrowed for a period of 30 years Find the amount K that is needed to be paid off each year

17 Find the savings plan balance after 10 months with an APR of 3 and monthly payments of 390

20 Calculate the monthly payment for a student loan of 20 934 at a fixed APR of 8 for 12 years

14 6000 deposit at an APR of 3 with daily compounding for 7 years

19 You intend to create a college fund for your baby If you can get an APR of 3 0 and want the fund to have a value of 119 906 after 16 years how much should you deposit monthly

12 1620 is invested at an APR of 3 for 15 years

Answer the following compound interest questions Show your work algebraically and use correct rounding and units for your answers A The amount of money in a savings account is modeled by A 7000e0 063r where t is measured in years since money was first placed in the account Determine how many years it would take until the account has a value of 37 000 Round your answer to the nearest 0 01 years

Suppose Maria invests 25 000 in an account bearing 5 7 interest compounded monthly How long will it take for the deposit to triple in value Do not round your decimals in the middle of the solution Round your answer to the nearest 0 01 year

3 points An amount of 1500 is deposited semi annually for two years into a fund that pays 10 5 per year compounded semi annually Determine the future value of this annuity

2 points Henry can save 15 of his net earnings The amount of four of his paycheques is shown What is the amount that Henry saves in total to the nearest dollar Show your work Pay Date June 30 July 31 August 31 September 30 Net Earnings 2009 34 2250 14 1997 56 2098 76

Suppose you want 25 000 in 14 years to purchase a car Find the amount of money you should deposit today at each A P R annual percentage rate below Round each answer to the nearest penny a 9 compounded monthly deposit 7527 33 That s not it b 11 compounded quarterly deposit 9482 37 Preview 7527 33 Preview 9482 37

Find the A P R annual percentage rate necessary for 9000 to grow to 24 000 in 9 years given the indicated method of compounding Express each answer in decimal form rounded to four decimal places a Compounded every 3 months A P R T b Compounded continuously A P R

Suppose you deposit 4700 into a savings account with an A P R annual percentage rate of 5 compounded continuously Find the following Round each answer to one decimal place a The time in years to reach 6580 t b The time in years to double years

You deposit 550 into an account with an A P R annual percentage rate of 6 Find the amount of money in the account after 5 years given each method of compounding Round each answer to the nearest penny a Compounded once annually b Compounded every 6 months c Compounded daily assume there are 365 days per year d Compounded continuously

What is the present worth of the following series of income disbursements if the interest rate is 6 per year Year Income Expense 0 12 000 2 000 1 5 400 6 8 13 283 O 13 765 O 11 980 12 456 800 900 100