How much money should they deposit in an account paying 10.2% so they will have $100,000 in 18 years to pay for their daughter's educational expenses?ġ3) Find the effective interest rate for an account paying 7.2% compounded quarterly.ġ4) If a bank pays 5.75% compounded monthly, what is the effective interest rate?ġ5) The population of the African nation of Cameroon was 12 million people in the year 2015 it has been growing at the rate of 2.5% per year. They want to put away money for her college education now. Tran are expecting a baby girl in a few days. How much must be deposited today into an account paying 7.5% compounded monthly to have $158,000 in 7 months?ġ2) Mr.
HOW MUCH MONEY PER MONTH CAN YOU MAKE WITH GOMEZ PEER FULL
ġ1) The City Library ordered a new computer system costing $158,000 it will be delivered in 6 months, and the full amount will be due 30 days after delivery.
If Jon invests this $6,000 at 7.5% compounded continuously, how much money will he have in 10 years?Ĩ) What will be the price of a $20,000 car in 5 years if the inflation rate is 6%?ĭo the following compound interest problems.ĩ) At an interest rate of 8% compounded continuously, how many years will it take to double your money?ġ0) If an investment earns 10% compounded continuously, in how many years will it triple?. Jon has convinced his grandfather to pay him $6,000 now, instead. How much money should be deposited now to pay for these machines, if the interest rate is 8% compounded semiannually?ħ) Jon's grandfather was planning to give him $12,000 in 10 years. Which bank pays more? Explain.Ħ) EZ Photo Company needs five copying machines in 2 1/2 years for a total cost of $15,000. How much money should she deposit lump sum in an account paying 8.2% compounded monthly to achieve that goal?ĥ) Bank A pays 5% compounded daily, whileīank B pays 5.12% compounded monthly. How much money will she have in 5 years?Ĥ) Thuy needs $1,850 in eight months for her college tuition. In an account that pays 6.9% compounded daily. Lydia spent $1,000 on her wardrobe and deposited the rest SECTION 6.2 PROBLEM SET: COMPOUND INTERESTĭo the following compound interest problems involving a lump-sum amount.ġ) What will the final amount be in 4 years if $8,000 is invested at 9.2% compounded monthly.?Ģ) How much should be invested at 10.3% for itģ) Lydia's aunt Rose left her $5,000. If she borrows the money for 10 months, find the amount of the loan she should ask for so that her proceeds are $750? Mary decides to borrow the amount from her bank at a discount rate of 16%. Find the amount of the loan he should ask for so that his proceeds are $2400.ġ6) Mary owes Jim $750, and wants to repay him. He can borrow this money at a discount rate of 14% for a year. Determine the amount of the discount and the proceeds to her.ġ3) An amount of $8,000 is borrowed at a discount rate of 12%, find the proceeds if the length of the loan is 7 months.ġ4) An amount of $4,000 is borrowed at a discount rate of 10%, find the proceeds if the length of the loan is 180 days.ġ5) Derek needs $2400 new equipment for his shop. Find the amount of the discount and the proceeds to Jose.ġ2) Tasha signs a note for a discounted loan agreeing to pay $1200 in 8 months at an 18% discount rate. The bank subtracts the discount of 12% of $2,000, and gives the rest to Jose. What was the simple interest rate?ġ1) Jose agrees to pay $2,000 in one year at an interest rate of 12%. What was the simple interest rate?ġ0) Nancy borrowed $1,800 and paid back $1,920, four months later. At the end of the three years, $2660 is paid back. If you owed $2000 three months ago and have been delinquent since, how much do you owe?ĩ) An amount of $2000 is borrowed for 3 years. If there is a monthly charge of 1.5%, how much does she owe?Ĩ) A credit card company charges 18% interest on the unpaid balance. If he took out the loan six months ago at 12% simple interest, what was the amount borrowed?ħ) Shanti charged $800 on her charge card and did not make a payment for six months. How much does she owe at the end of the 4-month period?ĥ) If an amount of $2,160, which includes a 10% simple interest for 2 years, is paid back, how much was borrowed 2 years earlier?Ħ) Jamie just paid off a loan of $2,544, the principal and simple interest. How much will he owe at the end of 3 years?Ĥ) Jessica takes a loan of $800 for 4 months at 12% simple interest. How much is the interest?ģ) John borrows $2400 for 3 years at 9% simple interest. SECTION 6.1 PROBLEM SET: SIMPLE INTEREST AND DISCOUNTĭo the following simple interest problems.ġ) If an amount of $2,000 is borrowed at a simple interest rate of 10% for 3 years, how much is the interest?Ģ) You borrow $4,500 for six months at a simple interest rate of 8%.