21.

What will be the approximate population of the United States, if its current population of

316

,000,000

grows at a compound rate of 2

.

3

% annually for

30

years?

(Enter your answer rounded to the nearest

whole number; for example, record 218

,

934

,210.86

as

218934211

).

22.

Assume that a gallon of milk costs $

3.

50

today. If the average annual inflation rate over the past

35

years was 2.75% p.a., what did a gallon of milk cost

35

years ago?

23.

What is the future value on the day of the last deposit of

2

5

annual deposi

ts of $

75

0 per year (first

deposit to be made today) given an interest rate of 5.5% p.a.?

24.

Assume that I

will

deposit $750 into an account exactly 10 years from today. How much will be in my

account at the end of year

60

(i.e., 60 years from today)

, assumin

g that my account pays interest of

4

.5% p.a.?

25.

The ShortHolder bank pays 5.60%

p.a.

,

but with daily compounding assume a

360

-

day

year

), on a 9

-

month certificate of deposit. If you

deposit $20,000 you would expect to earn

__________ in interest

(rounded to the nearest dollar)

.

26.

With continuous compounding at 8

% p.a.

for 20 years, what is the approximate future value of a

$20,000 initial investment

(rounded to the nearest dollar)

?

27.

For $1,000

Laura Croft

can purchase a 5

-

year ordinary annuity which will pay

her

a yearly payment

of $263.80 for 5 years. What is the annual interest rate implicit

in this investment

? Round your

an

swer to the near

est tenth (for example, record 0.4325 as 43.3%

-

but do not include the percent sign

in iCollege)

.

28.

Nathan Drake is

considering borrowing $100,000 for 30 years at a compound annual interest rate of

9

% p.a.

The

loan agreement calls for 30 equal annual payments, to be paid at the end of each of the

next 30 years

(p

ayments include both principal and interest.)

What is the annual payment that will

fully amortize

Nathan

'

s

loan?

29.

Cl

oud Strife is

going to place $12,500 into a certificate of deposit (CD) at a 6% annual rate

(compounded annually) with a maturity of 30 months. How much money will

Clou

d

receive when the

CD matures