Name: Chapter F.1 and F.2 Practice Finance Directions: Complete the following exercises Do any extra work on a separate sheet of paper. Be sure to write down the formula with the appropriate substitutions before calculating the answer. This practice sheet will be due on HuskyGT as scheduled F.1 Simple Interest and Discount 1. An amount of dollars is borrowed for a given length of time at an annual simple interest rate of r. Find the amount due at the end of the given length of time. a. P- $5000, r= 5.0%. 4 months b. P-$8000, r= 7.2%, 3 years 2. An amount of P dollars is borrowed with the amount F due at the end of the given length of time. Find the annual simple interest rate. a. P-$5000, F-$5300, 7 months b. P= $7800, F = $9200 4 years 3. Find the present amount needed to attain a future value of dollars in the given time at an annu simple interest rate ofr. a. F= $6400, r = 6.8%, 10 months b. F = $7200 r = 3.7%, 5 years Chapter F.1 and 2 Practice: Finance 4. Find the proceeds for the simple discounted loans for the given time with maturity value M and annual simple discountr. a. M = $3000, r=0.05, 8 months b. M = $7000, r=0.08. 2 years F.2 Compound Interest 1. Find the future value of the account with given present value P, the indicated annual rate of return r, number of yearst, and the indicated compounding. a. P-$2,500.r = 4.5%, t=5, compounded 1. Annually il. Monthly ili. Weekly Name: Chapter 7.1 and F.2 Practices Finance b. P-$5,000.r=2.8%. t = 10, compounded i. Semiannually Il Quarterly iii. Daily 2. Find the effective yield given the annual interest rater and the indicated compounding a. r6.4%, compounded i. semiannually ii. quarterly iii. monthly iv. weekly Name: Chapter F.1 and F.2 Practice Finance 3. Find the present value needed to have the given value with the indicated annual rate of return; the number of years and the indicated compounding a. F= $10,000, r8.2%. t = 15, compounded 1. Annually il. Monthly iii. Weekly b. F=$8,000, r = 6.2%, t = 20, compounded 1. Semiannually il. Quarterly iii. daily