Math 1313 Section 4.1 1. I = 16.25 ; r = 5% per year ; Simple interest t = 3 months ; P = ? a. $1,351.97 b. $1,300.00 c. $1,103.22 d. $1,371.07 e. $108.33 2. F = 10,709.41 ; r = 2% ; m = 12 ; t = 3 years ; P = ? a. $12,351.97 b. $12,864.75 c. $9,803.22 d. $11,371.07 e. $10,086.25 3. Hanna's aunt lent her $2,000. Her aunt is charging her 2.1% simple interest per year, and she must repay her aunt in 9 months. How much simple interest is Hanna charged over 9 months? a. $34.88 b. $18.87 c. $37.42 d. $31.50 e. $30.83 4. Chaz wishes to have $1,000 in an account paying 7% simple interest per year in 2.5 years. How much must he invest today to have the desired funds in 2.5 years? a. $851.06 b. $1,175.00 c. $175.00 d. $1,184.29 e. $844.39 5. Chelcie's local bank offers a four-year certificate of deposit (CD) that pays 3% simple interest per year. If she invests $1,700 in this CD, how much will it be worth in 4 years? a. $1,913.36 b. $1,904.00 c. $2,674.98 d. $1,916.46 e. $2,005.42 Homework Math 1313 Section 4.1 6. You've decided that your office furniture needs to be upgraded. You borrow $8,000 from your local bank to buy furniture. If the bank will charge you 4% per year compounded monthly for 2 years, how much will you owe the bank when the loan matures in 2 years? a. $8,913.36 b. $7,904.00 c. $8,674.98 d. $8,916.46 e. $8,665.14 Answer questions 7 and 8 for following problems Ian would like to have $250,000 in an account when he retires in 12 years. The account earns 10% per year compounded monthly. How much must he deposit today to have the desired funds in 12 years? 7. Identify the type of problem a. Present Value with compound interest b. Future Value with compound interest c. Simple Interest d. Future Value with simple interest e. Present Value with simple interest 8. State the answer to the question a. $300,000 b. $16,233.77 c. $3,850,000.00 d. $75,673.90 e. $825,912. Answer questions 9 and 10 for following problem. A young man is the beneficiary of a trust fund 25 years ago. If they had set aside $30,000, how much will be in the trust now if they could invest the money at 1.75% per year compounded semiannually? 9. Identify the type problem. a. Present Value with compound interest b. Future Value with compound interest c. Simple Interest d. Future Value with simple interest e. Present Value with simple interest 10. How much money will they have if the interest is compounded semiannually? a. $35,789.33 b. $46,376.57 c. $49,647.50 d. $65,592.11 Homework Math 1313 Section 4.1 e. $38,647.14