1) Lois is approved for a personal loan from a used car company.The loan is for $3000.00, with an interest rate of 6.75%/a, compounded monthly.Her monthly payments are $59.05 for 60 months.How much interest does she pay on her loan?

Answers: $543.00, $4200.34, $1200.34 OR $3543.00

2) After 24 years, Justin's $1000.00 invested is now $4000.00.Using the Rule of 72, estimate the interest rate Justin had on his investment.

Answers; 5%, 13%, 12%, OR 6%

3) Using the Rule of 72, estimate the number of years it will take for an investment of $5750 to double if the interest rate is 2.75% per annum, compounded annually.

Answers; 26.2 years, 27.5 years, 26.8 years, OR 25.3 years

4) Using the Rule of 72, estimate the number of years it will take for an investment of $1500.00 to double if the interest rate is 5% per annum, compounded annually.

Answers; 15.2 years, 13.5 years, 14.4 years, OR 15.6 years

5) You invest $6000.00 for 3 years in a term deposit that earns 5% per annum.Which of the following compounding periods will earn you the most amount of money?

Answers; weekly, monthly, annually, OR quarterly

6) Suzy plans to go on a trip when she finishes her post secondary program in 4 years.She found an investment offering 7% per annum interest compounded monthly.The cost of the trip is $5500.00, how much money does she need to invest now to pay for the trip in 4 years?

Answers; $5373.52, $213.77, $4160.19, OR $4195.92

7) Sonya's grandma invested $500.00 into a RESP for Sonya the day she was born.The interest rate was 1.4% per annum, compounded daily.When Sonya turned 19, she took out the money and interest to go to post secondary school.How much money does she have? Record your answer to two decimal places. Include units.

8) Monty puts $1000.00 of graduation money into a savings account earning 4.25% per annum interest, compounded weekly.He leaves the money for 5 years.How much money will be in his account at the end of 5 years? Record your answer to two decimal places. Include units.

9)Investment A and B both have the same amount of money invested ($2500.00), the same annual interest rate (6.5% per annum), and the same amount of time invested (20 years).Investment A is compounded yearly, whereas Investment B uses simple interest.Which investment will return a higher amount of interest?

Answers; Investment B, Investment A, OR They will have the same amount of interest

10) Determine the total amount of an investment when $5000.00 is invested for 5 years at an interest rate of 5% per annum, compounded monthly.

Answers; $641.68, $638.14, $141.68 OR $138.14

11) Select the correct formula to calculate the total amount of an investment of $5000.00 over two years with an interest rate of 0.8% per annum, compounded monthly.

Answers; a)A = 500 ( 1 + 0.008/12) ^2x12

b) A=5000 (1 + 0.8/2) ^2x12

c) A = 5000 (1+0.8/12) ^2x12

d) A = 5000 (1+ 0.008/2) ^2x12

12) Koia received a cheque in the mail when an investment matured (the term ended).The amount of money in the cheque was $773.90 (principle plus interest).She recalled that she invested $700.00 five years ago in a simple interest investment, but she cannot remember the interest rate.

How much did Koia earn in interest over 5 years?

Answers; $23.90, $773.90, $73.90, OR $700.90

13) Determine the interest rate of this investment.

Answers; 7.39%, 0.739, 0.211, OR 2.11%

14) Koia has another investment option with a simple interest rate of 3.45% per annum. Which investment option is the best choice for Koia to invest $1000.00 in?

Answers; a) The old one because it has a lower interest rate.

b) The new one because it has a lower interest rate.

c) The new one because it has a higher interest rate.

d) The old one because it has a higher interest rate.

15) Calculate the interest rate on a loan of $850.00 that earns $75.00 in interest over 4 years.Record your answer to one decimal place. Include units.

16) Steven is in a bind and needs extra money to pay his motorbike insurance.He asks his sister for a loan of $1600.00.She agrees to loan him the money as long as he pays simple interest of 5% per annum at the end of the loan.Steven agrees to the terms of the loan, but it takes 5 years to pay off the loan.

a. How muchinterestdoes Steve owe his sister after 5 years? Record your answer to two decimal places. Include units

b. How much money intotalwill Steve owe his sister? Record your answer to two decimal places. Include units.

c. Whatpercentof Steve'soriginal loandoes he pay in interest after 5 years? Record your answer to the nearest whole number. Include units.

16) 100 months seems like a huge amount of time for Jude, so he takes another look at his budget and find an extra $50 a month to reduce his $5000.00 credit card debt.Paying $149.47 per month, it will take him 4 years to pay off the debt.How much interest has he paid over the 4 years?

Answers; $2174.56, $149.47, $5000.00 OR $7174.56