Name:
Math 166 Quiz 10: F.1, F.2
Remember to show your work. Correct math is worth partial credit. Round to 2 decimal places.
1. (2 points) How much money should you deposit now in an account earning 8% annually in order to have
$
12,000 in 6 years and 2 months?
2. (2 points) Your grandparents deposit
$
20,000 into a trust earning 3% annual interest, compounded weekly, on the day you were born. The trust is to be released on your 21st birthday.
What is the value of the trust when it is released?
3. (2 points) If you take out a loan for
$
5,000 in an account with 15% annual interest, how long, in years, will it take for the value of the loan to become
$
15,000.
4. (2 points) A borrower is offered a discounted loan. He agrees to pay
$
35,000 to the bank in
3 months at 11% simple annual discount. What is the discount and what does the borrower actually receive from the bank?
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5. (2 points) If you take out a loan for
$
1,000 in an account with 13% annual interest compounded monthly, how long, in years, will it take for the value of the loan to become
$
7,000.
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