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Math 1313 Popper 6 1 2 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?