1 The cl ' lowes for Problem number 2 from the book are given below. / , k Ork 3- Sl,351.97 $1,300.00 6 lb}: XC'Q'D/e X C $1,103.22 : O D 4 A' d. $1,371.07 ,b: q/'@; Of") c $108.33 fi , 7' 2. TI - ,. 4 4' le ihOlsCILZS gcgrlpgrgblcm number 4 from the book are rivcn below. b $12,864:75 Fi XOXQOCL L" c $9,803.22 VC Qp'L, d. $11,371.07 ', X'Z/ e $10,086.25 (Yu: '3 l..;" 3. The choice f 17: S or Pmblem number 8 from the book are given below. a' 53458 ie 2000 b. $18.87 ' $37.42 rsoOZX O Org $31.50 ta am) '2,' - e $30.83 4. The choices for problem number 4 part b from the book are given below a. $851.06 {Kfc 7 $l,l75.00 0. 5175.00 ?= NO}? d. $1,18429 (: 00 -Y C. $844.39 k G 1 5. The choices for problem number 16 part b from the book are given below . $1,913.36 vx, Q 1,904.00 ' " r')- (kgb C. $2,674.98 , d. $1,916.46 ft (3.0'5 e. 2 005.42 $ , t ; DX 6 The ch01ces for problem number 20 part b from the book are given below 3 $8,913.36 ip: 7 b $7,904OO ? - goo" C $8,67498 ' Out: d $8,916 46 '- 6 $8,665 14 m = X1 - 7 WIG gnomes for problem number 24 part a, from the book are given below ' mpound interestv c. - Simple Interest d. Future Value with simple interest e. Present Value with simple interest 8. The choices for problem number 24 part b, from the book are given below. a. $300,000 b. $16,233.77 0. $3,850,000.00 d. $75,673.90 6 $825,912.24 Answer questions 9 and 10 for following problem. fund 25 years ago. A young man is the beneficiary of a trust $3030003 hOW much will be in the trust now if they could invest the money at 1 75 year compounded semiannually? 9' Identify the type problem. Present Value with compound interest ound interest Future Value with comp Simple Interest Future Value with simple interest Present Value With simple interest f the interest is compounded s We??? emiannually? 10. How much money Will they have i 3. $35,789.33 b. $46,376.57 0. $49,647.50 d. $65,592.11 e. $38,647.14Exercise Set 4.1: Simple Interest and Compound Interest Us intzrtgtt! itppropnate simple or compound . ormula to find the indicated value. 1 1' = 2,000 r = ' 4% per year Simple interest 1 = 2 months I= ? ED}: 16.25 r = 5% per year simple interest 1 = 3 months I':? 3 P=3,600 r=5.5% m=12 l'=2years km F:? N U = 10,709.41 = 2% m=12 t=3years P=? 5 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? 6 How much simple interest will be earned on a $2,000 deposit in an account that earns 5.4% simple interest per year over a period of 11 months? 7. Hank's uncle lent him $1,500. His uncle is charging him l.5% simple interest per year, and he must repay his uncle in 6 months. How much simple interest is Hank charged over 6 months? Hanna's aunt lent her $2,000. Her aunt is charging her 2. l % simple interest per year, and she must repay her aunt in 9 months. How much simple interest is Hanna over 9 months? 2l4 9. What is the simple interest rate on a Sl,200 chOS'l that grew to SLZGO over 7 months? lo. A simple interest bearing account has earned $80 after 8 months. If the account earns 5% simple interest per year. what was the principal? Il. Thomas' $2,000 deposit in a simple interest bearing account has grown to 5233250 in 3.5 years. What simple interest rate is he earning? 12 Jill deposited $450 in a simple interest bearing account that earns 6% per year. Today, the account's balance is $517.50. When did she deposit the original amount? For each of the following problems: A. Identify the type of problem. State the answer to the question. 13. 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 l .5 years. How much will Kyrie owe her parents in 1.5 years? haz wishes to have $l ,000 in an account paying 7% simple interest per year in 25 years. How much must he invest today to have the desired funds in 2.5 years? 15. Yaura's simple interest bearing, account has a total of $l,077.40. It has earned 4.47 % simple interest per year for 3 years. How much did she originally invest? helcie' s local bank offers a four-year certificate of deposit (CD) that pays 3% simple interest per year. If she invests $1,700 in this CD, how much will it be worth in 4 years? 17. Henry' 5 Individual Retirement Account (IRA) has $30,000 in it. The account earns Universitv of Houston Denartment of MathematicsExerdse set 41: Simple Interest and Compound Interest xx- Mum-- 7% m-"r-u-v ; mucffvlllirecgypqundid monthly. How @an would like to have 5250 000 in an ve in this account when he account when he "aims in {2 years. The reaches retir ' ement m 9 30 years account earns 10'70 per year compounded mommlh How much must he deposit today 18 Omar w - ouldl k payment to l e to have $5QOO for a down to have the desired funds in 12 years? How much wards a new boat 1" 3 years In 't . accoum that egg: 'gggs't now ln an 25. A newly married couple would like to buy a compounded quartel'q to get year home in 6 years. They anticipate they will funds in 3 years? y 0 ave the desxred need $25,000 for a down payment. Their ' local credit union pays 6.5% per year 19 New al. . compounded monthly. How much should 3120 goggts estlfnate that they Wlll nt'zed they deposit now to have the desired funds ed . I 'or their daughter's college in 6 years? theucimon In 10 Years. How much should 1 5.2gqglv::t today In an account that Pays 26. How much should a large corporation have tb: d y'ar Compounded quarterly to invest now in an account that pays 10% per eslred funds ln 10 YearS? year compounded semiannually to have 20 , . $1 .5 million in 12 years? lou ve decrded that your office furniture freeds to be upgraded. You borrow $8,000 27. In a certain town child daycare rates have b om Y9ur local bank to buy furniture. If the been rising at the rate of 7% per year ank Wln Charge you 4% Per Year compounded annually. If 2 years ago the Compounded monthly for 2 years, how rate per week was $150, how much would much Wlll you owe the bank when the loan you expect to pay today for one week of matures in 2 years? daycare? 21' large corporation has investexi $1 million 28. Todd would like to buy a piece of land in certificate of deposits (CD). The CDS whose value has been rising at the rate of Pay 8% Per Year compounded 2% per year compounded annually. If the piece of land is currently priced at $60,000, how much should he expect to pay in '2 years when he' 3 ready to buy the land? semiannually. How much will the CDs be worth in 8 years? 22. You recently had a baby and your great aunt's gift to him is a $10,000 towards his college education. You invest the money in an account that earns 6.3% per year compounded quarterly. How much will be in the account in 18 years when he's ready to start college? % Jerry would like to purchase a new car in 4 deposits $3,500 in an account that We per compounded monthly