Question 1

Find the present value of $58,669 due in 5 year(s) at an interest rate of 7% / year compounded continuously.Round your answer to the nearest dollar.
$__________

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Question 2

Find the accumulated amount A if the principal P is invested at an interest rate of r per year for t years.Round your answer to the nearest cent.
P = $180,000, r = 6%, t = 5, compounded daily
$__________

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Question 3

How long will it take an investment of $5,000 to double if the investment earns interest at the rate of 8% / year compounded monthly? Round your answer to the nearest tenth.
__________ year(s)

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Question 4

An investor purchased a piece of waterfront property.Because of the development of a marina in the vicinity, the market value of the property is expected to increase according to the rule  where V(t) is measured in dollars and t is the time in years from the present.If the inflation rate is expected to be 9% compounded continuously for the next 8 years, what is P(t) expected to be in 4 years?
A) 
B) 
C) 
D) 
E)

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Question 5

Find the accumulated amount after 4 year(s) if $3,000 is invested at 8% compounded continuously.Round your answer to the nearest cent.
$__________

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Question 6

Find the nominal interest rate that, when compounded continuously, yields an effective interest rate of 20% / year.
A)18.232%
B)19.089%
C)18.237%
D)18.654%

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Question 7

Find the nominal interest rate that, when compounded monthly, yields an effective interest rate of 16% / year.Round your answer to the nearest hundredth.
__________%

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Question 8

A condominium complex was purchased by a group of private investors for $1.8 million and sold 6 year(s) later for $3.5 million.Find the annual rate of return (compounded continuously) on their investment.Round your answer to the nearest hundredth.
__________%

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Question 9

Online retail sales stood at $22.7 billion for 2000.For the next 2 years, they grew by 32.4% and 27.4% per year, respectively.For the next 6 years, online retail sales are projected to grow at 30.5%, 19.6%, 24.2%, 13.4%, 17.4%, and 10.1% per year, respectively.What are the projected online sales for 2008? Round your answer to the nearest tenth.
$__________ billion

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Question 10

At an annual inflation rate of 8.5%, how long will it take the Consumer Price Index (CPI) to double? Round your answer to the nearest hundredth.
__________ year(s)

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Question 11

A condominium complex was purchased by a group of private investors for $1.5 million and sold 7 year(s) later for $3.7 million.Find the annual rate of return (compounded continuously) on their investment.Round your answer to the nearest hundredth.
Annual rate is __________% per year.

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Question 12

Julio purchased 1,100 shares of a certain stock for $26,750 (including commissions).He sold the shares 5 year(s) later and received $32,500 after deducting commissions.Find the effective annual rate of return on his investment over the 5-year period.Round your answer to the nearest hundredth.
__________%

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Question 13

Find the accumulated amount A if the principal P is invested at an interest rate of r per year for t years.Round your answer to the nearest cent.
P = $2,600, r = 6%, t = 10, compounded semiannually
$__________

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Question 14

How long will it take an investment of $4,000 to double if the investment earns interest at the rate of 7% compounded continuously? Round your answer to the nearest hundredth.  __________ year(s)

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Question 15

The Estradas are planning to buy a house 4 year(s) from now.Housing experts in their area have estimated that the cost of a home will increase at a rate of 7% / year during that 4-year period.If this economic prediction holds true, how much can they expect to pay for a house that currently costs $60,000? Round your answer to the nearest cent.
$__________

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Question 16

Find the nominal interest rate that, when compounded monthly, yields an effective interest rate of 6% / year.
A)5.91%
B)5.83%
C)5.84%
D)5.87%

Accepted Answer

We can use the formula for effective annual interest rate:

(1 + r/12)^12 = 1 + 0.06

Simplifying this equation, we get:

(1 + r/12) = (1 + 0.06)^(1/12)

(1 + r/12) = 1.004867

r/12 = 0.004867

r = 0.004867 x 12

r = 0.058404

So the nominal interest rate that yields an effective interest rate of 6% / year, compounded monthly, is about 5.84% (choice C).

Question 17

Find the interest rate needed for an investment of $4,000 to grow to an amount of $8,500 in 2 year(s) if interest is compounded monthly.Round your answer to the nearest hundredth.
__________%

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Question 18

Bernie invested a sum of money 7 year(s) ago in a savings account, which has since paid interest at the rate of 8% / year compounded quarterly.His investment is now worth $24,204.54.How much did he originally invest? Round your answer to the nearest cent.  $__________

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Question 19

How long will it take $4,000 to grow to $7,500 if the investment earns interest at the rate of 15% / year compounded monthly? Round your answer to the nearest tenth.
__________ year(s)

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Question 20

Find the interest rate needed for an investment of $5,000 to grow to an amount of $6,000 in 3 year(s) if interest is compounded continuously.Round your answer to the nearest hundredth.
Interest rate is __________% per year.

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Quiz 5: Exponential and Logarithmic Functions

Find the present value of $58,669 due in 5 year(s) at an interest rate of 7% / year compounded continuously.Round your answer to the nearest dollar. $__________

Find the accumulated amount A if the principal P is invested at an interest rate of r per year for t years.Round your answer to the nearest cent. P = $180,000, r = 6%, t = 5, compounded daily $__________

How long will it take an investment of $5,000 to double if the investment earns interest at the rate of 8% / year compounded monthly? Round your answer to the nearest tenth. __________ year(s)

Find the accumulated amount after 4 year(s) if $3,000 is invested at 8% compounded continuously.Round your answer to the nearest cent. $__________

Find the nominal interest rate that, when compounded continuously, yields an effective interest rate of 20% / year.

Find the nominal interest rate that, when compounded monthly, yields an effective interest rate of 16% / year.Round your answer to the nearest hundredth. __________%

A condominium complex was purchased by a group of private investors for $1.8 million and sold 6 year(s) later for $3.5 million.Find the annual rate of return (compounded continuously) on their investment.Round your answer to the nearest hundredth. __________%

At an annual inflation rate of 8.5%, how long will it take the Consumer Price Index (CPI) to double? Round your answer to the nearest hundredth. __________ year(s)

A condominium complex was purchased by a group of private investors for $1.5 million and sold 7 year(s) later for $3.7 million.Find the annual rate of return (compounded continuously) on their investment.Round your answer to the nearest hundredth. Annual rate is __________% per year.

Find the accumulated amount A if the principal P is invested at an interest rate of r per year for t years.Round your answer to the nearest cent. P = $2,600, r = 6%, t = 10, compounded semiannually $__________

How long will it take an investment of $4,000 to double if the investment earns interest at the rate of 7% compounded continuously? Round your answer to the nearest hundredth. __________ year(s)

Find the nominal interest rate that, when compounded monthly, yields an effective interest rate of 6% / year.

Find the interest rate needed for an investment of $4,000 to grow to an amount of $8,500 in 2 year(s) if interest is compounded monthly.Round your answer to the nearest hundredth. __________%

Bernie invested a sum of money 7 year(s) ago in a savings account, which has since paid interest at the rate of 8% / year compounded quarterly.His investment is now worth $24,204.54.How much did he originally invest? Round your answer to the nearest cent. $__________

How long will it take $4,000 to grow to $7,500 if the investment earns interest at the rate of 15% / year compounded monthly? Round your answer to the nearest tenth. __________ year(s)

Find the interest rate needed for an investment of $5,000 to grow to an amount of $6,000 in 3 year(s) if interest is compounded continuously.Round your answer to the nearest hundredth. Interest rate is __________% per year.