MATH 110 Solutions for Section 5x Quiz Problems
1. Use the compound interest formula
(
)
to compute the total amount and
Then interest earned on this investment:
$7000 for 7 months at 3% compounded monthly.
MATH 110 Solutions for Section 5x Quiz Problems
2. Find the simple interest. Assume a 360 day year.
Round the results to the nearest cent.
$21,000 at 3% for 76 days.
MATH 110 Solutions for Section 5x Quiz Problems
3. Find the compound amount for the deposit.
Round to the nearest cent.
$5000 at 6% compounded semiannually for 5 years.
MATH 110 Solutions for Section 5x Quiz Problems
4. Find the future value of an ordinary annuity if
payments are made in the amount R and interest is
compounded as given. Then determine how much
of this value is from contributions and how much is
from interest.
R=$11,000 at 4.6% interest compounded quarterly
for 15 years.
MATH 110 Solutions for Section 5x Quiz Problems
5. Find the size of each of 4 payments made at the
end of each year into a 6% rate sinking fund which
produces $90000 at the end of 4 years. Round to
the nearest cent.
MATH 110 Solutions for Section 5x Quiz Problems
6. Sandra deposits $3000 at the end of each
semiannual period for 14 years at 12% interest
compounded semiannually. Find the amount she
will have on deposit. Round to the nearest cent.
MATH 110 Solutions for Section 5x Quiz Problems
7. Find the lump sum deposited that will yield the
same total amount as this yearly payment (made at
the end of each year for 20 years at the given
interest rate, compounded annually.)
MATH 110 Solutions for Section 5x Quiz Problems
8. Find the payment necessary to amortize the loan.
$9,900 at 12% compounded monthly and 48
monthly payments.