1 You have $X to invest. A certain investment will double your money in Y years. If the interest rate remains constant, how much will your investment be worth in Z years Y= Z= 4,220 $ 11 years 16 years The interest rate (to two decimals) for this investment is: Try Again The value in 2 years is: Try Again (Don't use rounded interest rate for this ca 2 You are comparing two investments. The first pays A% interest per month, compounded monthly. The second pays B% interest per six months, compounded every six months. 1.4% * Page 1 1 What is the effective semi-annual rate for: (enter to two decimals) Investment 1 Try Again Investment 2 Try Again What is the effective annual rate for: Investment 1 Try Again Investment 2 Try Again Which investment do you prefer? 3 How much is accumulated in each of the following savings plans over X years? X= Y= 2 years 80 S 70 S 12% Z= A= $Y deposited at the end of each month at A% compounded monthly Try Again $2 deposited at the end of the first month, $2+1 at the end of the second month, and so forth, increasing by $1 per month, at A% compounded monthly. Try Again 4 How much should you invest today at A% to accumulate $X in Y years? X= $1,290,000 Y= 6% 39 years Az Try Again 5 Margo paid $A per month for B years to pay off a mortgage on her house. If her down payment was $C and interest rate was D% compounded monthly, what was the purchase price of the house? 2 A= B= $630 27 years $6,900 D= 12% Try Again 6 A new machine costs $X. It will be used for Y years then sold for $2. If interest is A%, what net yearly savings are needed to justify its cost? X= Y= $45,000 25 years $25,000 7% Z= A=