Math 1313 Popper 6
Which formula would you use for each of the following problems?
B. 𝐹 = 𝑃(1 + 𝑖)𝑛
C. 𝑃 = 𝐹(1 + 𝑖)−𝑛
A. 𝐼 = 𝑃𝑟𝑡
6 How much simple interest will be earned on an $800 deposit in an account that earns
2.3% simple interest per year over a period of 5 months?
7 Kyrie borrowed $3,000 from her parents to buy some furniture. Her parents will charge
her 3.25% simple interest per year. Her parents want the loan repaid in 1.5 years. How
much will Kyrie owe her parents in 1.5 years?
8 In a certain town child daycare rates have been rising at the rate of 7% per year
compounded annually. If 2 years ago the rate per week was $150, how much would you
expect to pay today for one week of daycare?
9 A large corporation has invested $1 million in certificate of deposits (CD). The CDs pay
8% per year compounded semiannually. How much will the CDs be worth in 8 years?
10 Jerry would like to purchase a new car in 4 years. He deposits $3,500 in an account that
pays 7% per year compounded monthly. How much will he have towards the purchase of
the car in 4 years?