Finding interest rates
EK17
MathQuestions.docx1). Find the compound amount and the amount of interest earned by the following deposit.
$5100 at 3.5% compounded continuously for 7 years.
The future value after 7 years is approximately $____
(Do not round until the final answer. Then round to the nearest cent as needed.)
2). Find the compound amount for the deposit and the amount of interest earned.
$7700 at 9% compounded quarterly for 8.
The compound amount after 8 years is $____
(Do not round until the final answer. Then round to the nearest cent as needed.)
3). The following money market account rates were available from a particular bank. Find the compound amount and the interest earned.
$5000 at 1.23% compounded daily for one year.
The compound amount is $____
(Do not round until the final answer. Then round to the nearest cent as needed.)
4). The following money market account rates were available from a particular bank. Find the compound amount and the interest earned.
$15,000 at 1.02% compounded monthly for three years
The compound amount is $____
(Do not round until the final answer. Then round to the nearest cent as needed.)
5). Find the interest rate for a $7000 deposit accumulating to $7996, compounded annually for 5
years.
The interest rate is %____
(Do not round until the final answer. Then round to two decimal places as needed.)
6). Find the compound amount and the amount of interest earned by the deposit below.
$2,000 at 4.21% compounded continuously for 2 years.
What is the compound amount? $____
(Do not round until the final answer. Then round to the nearest cent.)
7). Find the face value of the zero-coupon bond.
16-year bond at 3.4%; price $17,000
The face value will be $____
(Do not round until the final answer. Then round to the nearest dollar as needed.)
8). Find the present value (the amount that should be invested now to accumulate the following amount) if the money is compounded as indicated.
$12,782.78 at 6.3% compounded annually for 5 years
The present value is $_____
(Do not round until the final answer. Then round to the nearest cent as needed.)
9). Find the present value (the amount that should be invested now to accumulate the following amount) if the money is compounded as indicated.
$6300 at 3% compounded quarterly for 2 years.
The present value is $_____
(Do not round until the final answer. Then round to the nearest cent as needed.)
10). If money can be invested at 2.1% compounded quarterly, which is larger, $14,690 now or $17,000 in 7 years? Use present value to decide.
The present value of $17,000 in 7 years is $_____
(Do not round until the final answer. Then round to the nearest cent as needed.)
11). A company will need $70,000 in 7 years for a new addition. To meet this goal, the company deposits money in an account today that pays 8% annual interest compounded quarterly. Find the amount that should be invested to total $70,000 in 7 years.
The company should invest $____
(Do not round until the final answer. Then round to the nearest dollar as needed.)
12). Find the interest on the following loan.
$6000 at 4% for 3 months
The simple interest is $_____
(Round to the nearest cent as needed.)
13). Find the interest on the following loan. Assume 365 days in a year.
$35,500 at 8.25% for 157 days
The simple interest on $35,500 at 8.25% for 157 days is $_____
(Round to the nearest cent as needed.)
14). An account invested in a money market fund grew from $73,358.01 to $73,657.86 in a month. What was the interest rate to the nearest tenth?
What was the interest rate? ______
(Do not round until the final answer. Then round to the nearest tenth as needed.)
15). A stock that sold for $31 per share at the beginning of the year was selling for $48 at the end of the year. If the stock paid a dividend of $5.27 per share, what is the simple interest rate on the investment in this stock? Consider the interest to be the increase in value plus the dividend.
The simple interest rate is ____ %
(Do not round until the final answer. Then round to the nearest tenth as needed.)
16). Find the present value of an ordinary annuity which has payments of $1100 per year for 11 years at 5% compounded annually.
The present value is $______
(Round to the nearest cent.)
17). Find the amount necessary to fund the given withdrawals.
Semiannual withdrawals of $800 for 8 years; interest rate is 5.4% compounded semiannually.
The amount necessary to fund the given withdrawals is $_____
(Round to the nearest cent as needed.)
18). Find the payment necessary to amortize a 4% loan of $2400 compounded quarterly, with 9 quarterly payments.
The payment size is $_____
(Round to the nearest cent.)
19). Find the monthly house payments necessary to amortize an 8.4% loan of $292,200 over 20 years.
The payment size is $____
(Round to the nearest cent.)
