Chapter 1 Section 1.4 Simple interest (1) a) At what rate of simple interest will $500 accumulate to $615 in 2.5 years? b) In how many years will $500 accumulate to $630 at 7.5% simple interest? 2 At a certain rate of simple interest $1000 will accumulate to $1110 after a certain period of time. Find the accumulated value of $500 at a rate of simple interest three fourths as great over twice as long a period of time. 3. Simple interest of 1 4% is being credited to a fund, in which period is this equivalent to an effective rate of 2.5%? JA deposit if $100 is invested at simple interest at time t = 0. The rate of simple interest during yeart is equal to 0.01 fort=1,2,3,4 and 5. Find the total accumulated value of this investment at time t = 5. Chapter 1 Section 1.5 Compound interest (1) it is known that $600 invested for two years will earn $264 in interest. Find the accumulated value of $1000 invested at a rate of compound interest three fifths as great for four years. (2) Suppose that the ratio of the accumulated value of 1 invested at rate i forn periods, to the accumulated value of 1 invested at rate for n periods, >, is equal to the accumulated value of 1 invested for n periods at rater. Find an expression for r as a function of land j. (3) A certain rate of compound interest, 1 will increase to 2 in a years, 2 will increase to 3 in b years, and 3 will increast to 15 inc years. If 6 will increase to 10 in n years, express n as a function of a, b, and c. An amount of money is invested for one year at a rate of interest 2% per quarter. Let D(k) be the difference between the amount of interest earned on a compound interest basis and on a simple interest basis for quarter k, where k = 1,2,3,4. Find the ratio D(4) to (3)