math

1. If a principal P is borrowed at a simple interest rate r (expressed as a decimal) for a period of t years, the interest charge I is __________.

2. If a lender deducts the interest from the amount of the loan at the time the loan is made, the loan is said to be __________

3. True or False For a simple interest loan with interest rate r (expressed as a decimal), the amount A due at the end of t years on a principal P borrowed is P = A(1 + rt).

In Problems 5-12, write each decimal as a percent

5. 0.60 6. 0.40

In Problems 21-34, calculate the indicated quantity.

33. 50 is 15% of what number?

34. 40 is 18% of what number?

Problems 35-40, find the interest due on each loan.

35. $1000 is borrowed for 3 months at 4% simple interest.

36. $100 is borrowed for 6 months at 8% simple interest.

Problems 41-46, find the simple interest rate for each loan.

41. $1000 is borrowed; the amount owed after 6 months is $1050.

43. $300 is borrowed; the amount owed after 12 months is $400.

In Problems 47-50, find the proceeds for each discounted loan.

47. $1200 repaid in 6 months at 10%.

49. $2000 repaid in 24 months at 8%

In Problems 51-54, find the amount you must repay for each discounted loan. What is the equivalent simple interest rate for this loan?

51. The proceeds are $1200 for 6 months at 10%.

53. The proceeds are $2000 for 24 months at 8%.

1. Evaluate: (a) (1 + 0.05) upward power is 8

3. Change the equation 2 = (1.05)t to a logarithmic equation: __________

5. True or False The more times in a year that interest is compounded, the more money there is after one year.

7. When interest at a rate r is compounded on a principal P so that the amount after one year is Per, the interest is said to be __________ __________.

11. $500 invested at 8% compounded quarterly after a period of 2 half year

13. $600 invested at 5% compounded daily after a period of 3 years

17. $100 invested at 3% compounded continuously after a period of 21/4 years

In Problems 19-28, find the principal needed now to get each amount; that is, find the present value.

19. To get $100 after 2 years at 2% compounded monthly

25. To get $80 after 3 1/4 years at 2% compounded continuously

27. To get $400 after 1 year at 4% compounded continuously

1. Evaluate: (1 + 0.04)4. Round your answer to 5 decimal places.

3. An __________ is a sequence of equal periodic deposits

Problems 5-14, find the amount of each annuity.

5. After 10 annual deposits of $100 at 10% compounded annually

In Problems 15-24, find the payment required for each sinking fund.

15. The amount required is $10,000 after 5 years at 3% compounded monthly. What is the monthly payment?

19. The amount required is $25,000 after 6 months at 5 1/2% compounded monthly. What is the monthly payment?

25. Market Value of a Mutual Fund Al invests $2500 a year in a mutual fund for 15 years. If the market value of the fund increases 5% per year, what will be the value of the fund after 15 deposits?

32. Paying Off Bonds A state has $5,000,000 worth of bonds that are due in 20 years. A sinking fund is established to pay off the debt. If the state can earn 6% annually on its money, what is the annual sinking fund deposit needed? Prepare a table showing the growth of the sinking fund every 5 years

1. The withdrawal is to be $500 per month for 36 months at 4% compounded monthly.

3. The withdrawal is to be $100 per month for 9 months at 2% compounded monthly.

11. A loan of $1,000,000 amortized over 360 months at 8%

12. A loan of $100,000 amortized over 60 months at 6%

25. Analyzing a Town House Purchase Mike and Yola have just purchased a town house for $200,000. They obtain financing with the following terms: a 20% down payment and the balance to be amortized over 30 years at 9%. (a) What is their down payment? (b) What is the loan amount? (c) How much is their monthly payment on the loan? (d) How much total interest do they pay over the life of the loan? (e) If they pay an additional $100 each month toward the loan, when will the loan be paid? (f) With the $100 additional monthly payment, how much total interest is paid over the life of the loan?

29. Paying for Restaurant Equipment A restaurant owner buys equipment costing $20,000. (a) If the owner pays 10% down and amortizes the rest with equal monthly payments over 4 years at 12% compounded monthly, what will be the monthly payments? (b) How much interest is paid