Question: 1. Use the simple interest formula, I = Prt to find the unknown value. a) I = ?, P = $800, r = 10%, t

1. Use the simple interest formula, I = Prt to find the unknown value. a) I = ?, P = $800, r = 10%, t = 6 years b) I = $37.92, P = ?, r = 5%, t = 8 months 4K 2. If an investment offers an interest rate of 9% per annum, compounded monthly, determine the rate per compounding period, i. 2K 3. If an investment is compounded semi-annually for 6 years, determine the total number of compounding periods, n. 2K 4. Describe the effect the compounding frequency, interest rate, and duration of an investment have on the amount of the investment. Rank these three factors in the order of greatest effect to least effect.5. An investment of $4800 earned interest at 5.6% per annum compounded anually. How much would the investment be worth in 3 years? 3A 6. An investment of $2200 earned interest at 9.2% per annum compounded quarterly. How much would the investment be worth in 6 years? 3A7. A car loan can be taken for 5 years. At an interest rate of 8.4% per annum compounded monthly, the total cost of the car loan would be $37993.41. What is the cost of the car if you pay cash for it today rather than take out the loan? 4T 8. Karen made an investment of $2500 two years ago to go on a trip. She invested the money at 7.2% per annum compounded semi-annually. Her investment will mature in three years. Dwayne would also like to go on the trip. However, he hasn't started saving yet. How much must he invest today at 9.6% per annum compounded monthly to have the same amount as Karen will have three years from now? 4T

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