Compute the 5-year future value of a $6,970 deposit into an account whose annual rate is 1.6% with continuous compounding.

Round your answer to the nearest dollar.

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Question 2

1 pts

What is the present value of a 2-year debt whose future value is $9,287 if the loan has an annual rate of 3.1% with continuous compounding?

Round your answer to the nearest dollar.

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Question 3

1 pts

How many years would it take for a debt of $1,559 to grow into $3,402 if the annual rate is 5.4% with continuous compounding?

In this question you will need to solve for t in FV = PVert. Start by dividing both sides by PV. Then use logarithms to "bring down" the exponent.

Round your answer to the nearest tenth of a year.

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Question 4

1 pts

How many years will it take to double the debt of a loan whose annual rate is 6.8% with continuous compounding?

In this question you will need to solve for t in FV = PVert. Start by dividing both sides by PV. Then use logarithms to "bring down" the exponent.

Round your answer to the nearest tenth of a year.

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Question 5

1 pts

What annual rate with continuous compounding would be required for a debt of $1,816 to grow into $3,212 in 15.3 years?

In this question you will need to solve for r in FV = PVert. Start by dividing both sides by PV. Then use logarithms to "bring down" the exponent.

Round your answer to the nearest tenth of a percent.

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Question 6

1 pts

Compute the interest on a 5-year loan for $12,592 if the annual rate is 4.9% with continuous compounding.

Round your answer to then nearest dollar.

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Question 7

1 pts

Suppose that 17 years ago, you borrowed a certain amount of money. The loan had an annual interest rate of 5.5% with continuous compounding, and today you repaid a total of $70,691.

How much interest did you pay on this loan, as a percentage of how much you borrowed? For example, if you borrowed $1000 and you paid $175 in interest, the answer would be 17.5 (percent).

Round your answer to the nearest percent.

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Question 8

1 pts

Sam and Randy each take out a loan for $8,406. Sam's loan has an annual rate of 18.7% with semi-annual compounding (twice per year). Randy's loan has the same annual rate, but it uses continuous compounding. How many months does Randy need to wait in order to have the same debt that Sam will have after 119 months?

In this question you will need to solve for t in FV = PVert. Start by dividing both sides by PV. Then use logarithms to "bring down" the exponent.

Round your answer to the nearest tenth of a month.