7 QUANTITATIVE METHODS FOR BUSINESS Review Questions 1. A contractor invests $2,500 for 54 months at a simple interest rate of 6.5% per annum. Find the total interest accumulated and the maturity value of the principal. 2. Try the following questions: (a) An amount of $16,000 is invested at an interest rate of 3% per annum, compounded monthly. Find the amount of compound interest earned after (i) Two years, (ii) Five years. (b) If the amount invested is $30,000 and the interest rate is 6% per annum, compounded quarterly, find the amount of compound interest earned after: (i) Two years; (ii) Five years. 3. Dianne borrows $12,000 from her bank to start an importing business. The bank charges an annual interest rate of 2.5% compounded quarterly over five years. What quarterly payments will Dianne have to make on the loan? 4. A company operates a savings scheme for its employees, with interest at 5.6% per year compounded monthly. (a) Calculate the amount saved at the end of 5 years when $200 is deposited at the end of each month