8.3-8.6. Using the Finance Formulas potage 2 of 21 15. Suppose you invest $5,000 in a savings account that pays an annual interest rate of 4%. If the interest is compounded monthly, what is the balance in the account after 10 years? 16. You invest $5000 at 2.2% annual interest compounded quarterly. How much do you have after 5 years? 17. Against expert advice, you begin your retirement savings at age 40. You plan on retiring at age 65. How much will you need to deposit each month into a savings account with an annual interest rate of 6% compounded monthly if your goal is to save $150,000? 18. How much money should be deposited today at 3% annual interest compounded continuously in order to have $10,000 after 4 years? I MacBook Air S & 5 6 8 0 W E R T . U D F G . X B N M OB 26 D 83-86+Using the Finance Formulas.pot page 1 of 2) Q U To Wow save money wo wymow compus your deposito a Montana MITES rate of 6% compounded monthly, how much money will you have saved after a year? 7. You deposit $2000 at 3.25% annual interest compounded continuously. How much do you have after 2 years? 8. What is the effective annual yield for a savings account with an annual interest rate of 2.3% compounded semi-annually? Give your final answer as a percentage rounded to two decimal places. 9. Suppose you want to borrow $40,000 for a term of 5 years at an annual interest rate of 5.5% compounded monthly. What is your monthly payment for a fixed installment loan? 10. How much should you deposit at the end of each quarter into an account that pays 4.4% annual interest compounded quarterly in order to have $5000 in three years? 11. What is the monthly payment for a 10-year fixed installment loan of $10,000 at 5% annual interest compounded monthly? 12. The annual interest rate for a fixed installment loan with a term of 6 years is 6% compounded monthly. The lending agency says that based on your income, your monthly payment can be at most $900. How much can you borrow? (Use the formula that you typically use for installment loans, but you'll need to solve for a different variable than the monthly payment.) 13. In order td start a small business, a student takes out a simple interest loan for $4000 for 9 months at an annual interest rate of 8.25%. How much interest will the student pay? 14. Suppose you deposit $500 at the end of each quarter into an account that pays 3% annual interest compounded quarterly. How much do you have after 8 years? MacBook Air S 4 5 & 7 6 8 O R T Y 0 D F H K B N
