1.Find the accumulated value of an investment of $10,000 for 4 years at an interest rate of 5% if the money is? A. Compounded semiannually; b. Compounded quarterly; c. Compounded monthly d. Compounded continuously

2.A person invested #6000 at 9% simple interest per year. How long will it be before investment is worth 9000 or more?

3.So if nominal interest is 12% compounded monthly, it is actually 1% compounded each month. It is not 12% effective year, though it is close (It is 12.7%) So why don't we/they say 1% compounded monthly? Or just use effective yearly rate? Nothing is actually 12%, so why is this number used? I asked my professor this, and her answer was so that we could compare these nominal interest rates, but that doesn't really "sit" with me, because you cannot directly compare these rates. Example: How do you compare 12% compounded monthly, or 13% compounded three times a year. It is not immediately obvious which is greater. So why is nominal interest defined the way it is?

4.A perpetuity-immediate pays $X per year. Brian receives the first n payments, Colleen receives the next n payments, and Jeff receives the remaining payments. Brian's share of the present value of the original perpetuity is 40%, and Jeff's share is K. Calculate K.The perpetuity immediate present value is: $a_{\\infty\ eg i}=\\cfrac{X}{i}\ag{1}$ $\ext{Brian's share}=0.4\\cfrac{X}{i}\ag{2}$

5.Marie relaxed her washer and dryer with a new set with a purchase price of $1450. She paid $150 down and financed the remainder over 2 years at 5.5% APR. Instead of making her 12th payment she wants to pay off the loan. What is..

a. Her monthly Payment

b. The amount of interest that Marie will save by paying off the loan early?

c. The total amount due to pay off the loan?

6.What is the present value of CD with 4% annual interest that matures in 1 year with the value of $3000? What is the future value? What factor would determine which value you chose to use?

7.A $1,000 treasury bond with a current yield of 5.2% that is quoted at 107 points. The annual interest is what?

8.You deposit $1,000 for 4 years at an interest rate of 2%. If the interest is compounded quarterly. how much money do you have after the 4 years?

9.Explain why or why not compound interest is greater than simple interest

10.You deposit $150 in a saving account that earns simple interest at a rate of 5.5% per year.How much interest will you have earned after 4 years