Homework Course – 1

Homework Course – 1
1. How much money will your friend have after 4 years if she saves $1000 now at 7% per
year simple interest
2. How much can you borrow today if you pay $859 two years from now at an interest rate
of 6% per year compounded yearly
3. Describe the economy symbols and their values for the following plan :
Dr. Raffle hopes to borrow $800 now and repay it at $100 per year for the next 5 years
and $2000 per year for the following 2 years. What is the interest rate?
4. Define the economy symbols for a problem to determine how many years it would take
for $5000 to double in size at a compound interest rate of 5.5% per year
5. Cheryl collected advertised loan rate from three places. They are 10% per year
compounded semi annually, 115 per year compounded quarterly, and 11,5% per year.
State the interest period in month for each rate