©Zarestky
Math 141 Quiz 10 Version B
12/1/2009
NAME:________________________________________
1.
(2 points) $2000 is invested in an account paying 5.65% simple interest per year.
A. How much is in the account after 6 years?
A = P(1 + rt) = 2000(1 + 0.0565·6) = $2678
B. How much interest is earned?
Interest = Prt = A – P = 2678 – 2000 = $678
2.
(2 points) If an account paying 3% interest compounded annually has a balance of $1400 after 7 years,
how much was initially invested in the account?
N = 1·7 = 7
I% = 3
PV = ?
PMT = 0
FV = 1400
P/Y = 1
C/Y = 1
3.
(3 points) You deposit $3800 in a savings account paying 4.9% per year compounded weekly. After how
many years will you have $5300 in the account?
N = ? = 353.2418
I% = 4.9
PV = –3800
PMT = 0
FV = 5300
P/Y = 52
C/Y = 52
3.
$1138.33 was initially invested.
353.2418/52 = 6.7931 years
(3 points) Your credit card has a balance of $1100 on which you are paying interest at a rate of 21.5% per
year compounded monthly. How much should your payments be if you want to pay off the card in 4 years?
N = 12·4 = 48
I% = 21.5
PV = 1100
PMT = ?
FV = 0
P/Y = 12
C/Y = 12
The payments should be $34.36.