Question 1

Use the compound interest formula to compute the total amount accumulated.
-$4000 for 3 years at 2% compounded annually
A) $4240.00
B) $4244.83
C) $4160.00
D) $4161.60

Accepted Answer

The compound interest formula is A = P(1 + r/n)^(nt). Here, P = 4000, r = 0.02, n = 1, t = 3. Plugging in these values, A = 4000(1 + 0.02/1)^(1*3) = 4000(1.02)^3 = 4244.83.

Question 2

Use the present value formula to determine the amount to be invested now, or the present value needed.
-The desired accumulated amount is $3100 after 2 years invested in an account with 5% interest Compounded quarterly.
A) $293.26
B) $3423.91
C) $2806.74
D) $2811.79

Accepted Answer

The answer of Use the present value formula to determine...

Question 3

Use the compound interest formula to compute the total amount accumulated.
-$700 for 12 years at 3% compounded daily (use n = 360)
A) $998.03
B) $773.30
C) $1003.32
D) $700.70

Accepted Answer

The compound interest formula is A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount ($700), r is the annual interest rate (3%, or 0.03 as a decimal), n is the number of times that interest is compounded per year (360), and t is the time the money is invested for (12 years). Plugging in the values: A = 700(1 + 0.03/360)^(360*12) = $1003.32.

Question 4

Use the compound interest formula to compute the total amount accumulated.
-$2000 for 6 years at 1.5% compounded monthly
A) $2015.05
B) $2188.23
C) $1750.58
D) $4054.57

Accepted Answer

The compound interest formula is A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested for in years. Plugging in the given values: A = 2000(1 + 0.015/12)^(12*6) = $2188.23.

Question 5

Solve the problem.
-Brad invests $1500 in an account paying 3.5% compounded monthly. How much is in the account After 7 months?
A) $1908.42
B) $1502.55
C) $1530.89
D) $1530.41

Accepted Answer

The answer of Solve the problem.
-Brad invests $1500 in an...

Question 6

Use the compound interest formula to compute the total amount accumulated.
-$3500 for 6 years at 5.5% compounded monthly
A) $3891.78
B) $3597.36
C) $4864.72
D) $33,667.34

Accepted Answer

The compound interest formula is A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount ($3500), r is the annual interest rate (5.5% or 0.055), n is the number of times that interest is compounded per year (monthly compounding means n=12), and t is the time the money is invested for in years (6 years). Plugging in the values: A = 3500(1 + 0.055/12)^(12*6) = $4864.72.

Question 7

Use the compound interest formula to compute the total amount accumulated.
-$3750 for 12 years at 6.5% compounded daily (use n = 360)
A) $3758.13
B) $4648.24
C) $8179.95
D) $7984.11

Accepted Answer

The compound interest formula is A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount ($3750), r is the annual interest rate (6.5%, or 0.065 as a decimal), n is the number of times that interest is compounded per year (360), and t is the time the money is invested for (12 years). Plugging in the values: A = 3750(1 + 0.065/360)^(360*12) = $8179.95.

Question 8

Solve the problem.
-You purchase a 189-day, $1000 U.S. Treasury bill at 0.36% discount. On the date of maturity, you Will receive $1000. What is the actual rate of interest of the Treasury bill? Express the rate as a Percent rounded to four decimal places.
A) 0.3607%
B) 1.8900%
C) 0.36%
D) 0.0036%

Accepted Answer

The actual rate of interest can be calculated using the formula for the discount yield on a Treasury bill, which is [(Face Value - Purchase Price) / Purchase Price] * (360 / Days to Maturity). The discount on the T-bill is 0.36% of $1000, which equals $3.60. Therefore, the purchase price is $1000 - $3.60 = $996.40. Plugging these values into the formula gives us [(1000 - 996.40) / 996.40] * (360 / 189) = 0.003607, or 0.3607% when expressed as a percentage.

Question 9

Use the present value formula to determine the amount to be invested now, or the present value needed.
-The desired accumulated amount is $26,000 after 11 years invested in an account with 3% interest Compounded semiannually
A) $7262.12
B) $18,782.95
C) $36,076.66
D) $18,737.88

Accepted Answer

The answer of Use the present value formula to determine...

Question 10

Use the compound interest formula to compute the total amount accumulated.
-$19,000 for 5 years at 7% compounded semiannually
A) $22,566.04
B) $26,801.38
C) $25,650.00
D) $26,648.48

Accepted Answer

The compound interest formula is A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount ($19,000), r is the annual interest rate (7% or 0.07), n is the number of times that interest is compounded per year (semiannually means n=2), and t is the time the money is invested for in years (5 years). Plugging in the values: A = 19000(1 + 0.07/2)^(2*5) = 19000(1 + 0.035)^(10) = 19000(1.035)^10 ≈ $26,801.38.

Question 11

Solve the problem.
-You have a tax refund of $496.61. You are able to get the tax refund immediately from your tax Preparation agency for a finance charge of $49.88. What annual simple interest rate are you paying For this loan assuming the tax refund check would be available in 13 days? Round to the nearest Hundredth.
A) 27.81%
B) 309.20%
C) 30.92%
D) 278.14%

Accepted Answer

The annual simple interest rate can be calculated using the formula for simple interest, which is $I = PRT$, where $I$ is the interest paid, $P$ is the principal amount (the amount of the loan), $R$ is the rate of interest per period, and $T$ is the time the money is borrowed for in the same time units as $R$. Here, $I = \$49.88$, $P = \$496.61$, and $T = 13/365$ years (since we're calculating an annual rate and the loan is for 13 days). Rearranging the formula to solve for $R$, we get $R = I / (PT)$. Plugging in the numbers: $R = 49.88 / (496.61 * (13/365))$, which gives an annual rate of approximately 309.20% when rounded to the nearest hundredth.

Question 12

Use the present value formula to determine the amount to be invested now, or the present value needed.
-The desired accumulated amount is $3800 after 4 years invested in an account with 5% interest Compounded annually.
A) $3282.58
B) $673.73
C) $4618.92
D) $3126.27

Accepted Answer

The answer of Use the present value formula to determine...

Question 13

Use the present value formula to determine the amount to be invested now, or the present value needed.
-The desired accumulated amount is $20,800 after 15 years invested in an account with 5% interest Compounded annually.
A) $10,505.41
B) $43,241.71
C) $10,005.16
D) $10,794.84

Accepted Answer

The answer of Use the present value formula to determine...

Question 14

Solve the problem.
-You borrow $900 from your bank for 3 months. The loan agreement states that you must repay the Loan at a rate of $300 per month plus interest. The interest rate for the loan is 2% above the prime Interest rate. During the first month the prime rate is 4.25%, during the second month it is 5.25%, And during the third month it is 5.5%. What is the total amount of interest you pay on the loan?
A) $11.21
B) $10.19
C) $9.17
D) $8.66

Accepted Answer

The answer of Solve the problem.
-You borrow $900 from your...

Question 15

Use the compound interest formula to compute the total amount accumulated.
-$1810 for 4 years at 2% compounded annually
A) $1959.20
B) $1920.79
C) $1954.80
D) $1918.60

Accepted Answer

The compound interest formula is A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested for in years. For this problem, P = $1810, r = 2% = 0.02, n = 1 (since it's compounded annually), and t = 4 years. Plugging these values into the formula gives A = 1810(1 + 0.02/1)^(1*4) = 1810(1.02)^4 = $1959.20.

Question 16

Solve the problem.
-Brad invests $3700 in an account paying 3.5% compounded quarterly. How much is in the account After 15 months?
A) $3864.73
B) $3740.51
C) $4394.44
D) $3862.58

Accepted Answer

The amount in the account after 15 months can be calculated using the formula for compound interest: A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested for in years. Here, P = $3700, r = 3.5% or 0.035, n = 4 (since the interest is compounded quarterly), and t = 15/12 years (since we're dealing with 15 months). Plugging these values into the formula gives A = $3700(1 + 0.035/4)^(4*(15/12)) = $3864.73.

Question 17

Use the compound interest formula to compute the total amount accumulated.
-$100 for 3 years at 3% compounded quarterly
A) $109.00
B) $102.27
C) $109.38
D) $109.27

Accepted Answer

The compound interest formula is A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested for in years. For this problem, P = $100, r = 3% or 0.03, n = 4 (since interest is compounded quarterly), and t = 3 years. Plugging these values into the formula gives A = 100(1 + 0.03/4)^(4*3) = $109.38.

Question 18

Use the present value formula to determine the amount to be invested now, or the present value needed.
-The desired accumulated amount is $9000 after 8 years invested in an account with 3% interest Compounded semiannually
A) $1907.72
B) $11,420.87
C) $7104.68
D) $7092.28

Accepted Answer

The present value $PV$ formula for compound interest is $PV = \frac{FV}{(1 + r/n)^{nt}}$, where $FV$ is the future value, $r$ is the annual interest rate, $n$ is the number of times the interest is compounded per year, and $t$ is the time in years. Here, $FV = \$9000$, $r = 0.03$, $n = 2$, and $t = 8$. Plugging these values into the formula gives $PV = \frac{9000}{(1 + 0.03/2)^{2*8}}$, which calculates to approximately \$7092.28.

Question 19

Use the compound interest formula to compute the total amount accumulated.
-$2830 for 5 years at 3% compounded semiannually
A) $3254.50
B) $3048.71
C) $3280.75
D) $3284.33

Accepted Answer

The compound interest formula is A = P(1 + r/n)^(nt). Here, P = 2830, r = 0.03, n = 2, t = 5. Plugging these values in gives A = 2830(1 + 0.03/2)^(2*5) = 3284.33.

Question 20

Solve the problem.
-John Leeʹs savings account has a balance of $3856. After 2 years, what will the amount of interest Be at 4% compounded semiannually?
A) $314.65
B) $155.78
C) $317.86
D) $308.48

Accepted Answer

The amount of interest can be calculated using the compound interest formula: A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount ($3856), r is the annual interest rate (4% or 0.04), n is the number of times that interest is compounded per year (semiannually means n=2), and t is the time the money is invested for in years (2 years). To find the interest earned, subtract the principal from the total amount after 2 years. Calculation: A = 3856(1 + 0.04/2)^(2*2) = 3856(1 + 0.02)^4 ≈ 3856 * 1.082856 = 4173.86. Interest = 4173.86 - 3856 = $317.86.

Quiz 10: Consumer Mathematics

Use the compound interest formula to compute the total amount accumulated. -$4000 for 3 years at 2% compounded annually

Use the present value formula to determine the amount to be invested now, or the present value needed. -The desired accumulated amount is $3100 after 2 years invested in an account with 5% interest Compounded quarterly.

Use the compound interest formula to compute the total amount accumulated. -$700 for 12 years at 3% compounded daily (use n = 360)

Use the compound interest formula to compute the total amount accumulated. -$2000 for 6 years at 1.5% compounded monthly

Solve the problem. -Brad invests $1500 in an account paying 3.5% compounded monthly. How much is in the account After 7 months?

Use the compound interest formula to compute the total amount accumulated. -$3500 for 6 years at 5.5% compounded monthly

Use the compound interest formula to compute the total amount accumulated. -$3750 for 12 years at 6.5% compounded daily (use n = 360)

Solve the problem. -You purchase a 189-day, $1000 U.S. Treasury bill at 0.36% discount. On the date of maturity, you Will receive $1000. What is the actual rate of interest of the Treasury bill? Express the rate as a Percent rounded to four decimal places.

Use the present value formula to determine the amount to be invested now, or the present value needed. -The desired accumulated amount is $26,000 after 11 years invested in an account with 3% interest Compounded semiannually

Use the compound interest formula to compute the total amount accumulated. -$19,000 for 5 years at 7% compounded semiannually

Use the present value formula to determine the amount to be invested now, or the present value needed. -The desired accumulated amount is $3800 after 4 years invested in an account with 5% interest Compounded annually.

Use the present value formula to determine the amount to be invested now, or the present value needed. -The desired accumulated amount is $20,800 after 15 years invested in an account with 5% interest Compounded annually.

Use the compound interest formula to compute the total amount accumulated. -$1810 for 4 years at 2% compounded annually

Solve the problem. -Brad invests $3700 in an account paying 3.5% compounded quarterly. How much is in the account After 15 months?

Use the compound interest formula to compute the total amount accumulated. -$100 for 3 years at 3% compounded quarterly

Use the present value formula to determine the amount to be invested now, or the present value needed. -The desired accumulated amount is $9000 after 8 years invested in an account with 3% interest Compounded semiannually

Use the compound interest formula to compute the total amount accumulated. -$2830 for 5 years at 3% compounded semiannually

Solve the problem. -John Leeʹs savings account has a balance of $3856. After 2 years, what will the amount of interest Be at 4% compounded semiannually?