Math1

1.) Make the indicated conversion. Assume a 360-day year as needed.

150 days to a simplified fraction of year

2.) Find the compound interest earned. Round to the nearest cent.

$14,000 at 5% compounded annually for 3 years

3.) Provide an appropriate response. Round to answer to two decimal places.

An investment company pays 7% compounded quarterly. What is the effective rate?

4.) Solve the problem. Round to the nearest cent as needed.

How long will it take for $8400 to grow to $14,600 at an interest rate of 9.4% if the interest is compounded continuously?

5.) Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise indicated.

PMT = $7,500, i = 7% interest compounded semiannually for 5 years

6.) Find the monthly house payment necessary to amortize the following loan. Round the answer to the nearest cent.

In order to purchase a home, a family borrows $267,000 at 10.8% for 15 yr. What is their monthly payment?