6. Calculate the present value of the compound interest loan. (Round your answers to the nearest cent.)

$21,000after7years at5%if the interest is compounded in the following ways.

(a)annually

$

(b) quarterly

$

7. Find the term of the compound interest loan. (Round your answer to two decimal places.)

5.9%compounded quarterly to obtain$8700from a principal of $2000.

_______ yr.

8.Use the "rule of 72" to estimate the doubling time (in years) for the interest rate, and then calculate it exactly. (Round your answers to two decimal places.)

4%compounded annually.

"rule of 72"

yr

exact answer

yr

9. Find the effective rate of the compound interest rate or investment. (Round your answer to two decimal places.)

22%compounded monthly. [Note: This rate is a typical credit card interest rate, often stated as1.8%per month.]

%

10. Since 2007, a particular fund returned13.7%compounded monthly. How much would a$4000investment in this fund have been worth after4years? (Round your answer to the nearest cent.)

$