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Need help on Math problemrequiring step by step solution. Simple Interest (a) If $1,000 earns 3% annual simple interest, how much interest is earned and
Need help on Math problemrequiring step by step solution.
Simple Interest (a) If $1,000 earns 3% annual simple interest, how much interest is earned and what is the future value in 4 years? (b) In order to have a balance of $2,000 in 3 years, how much money must be deposited now at 5% annual simple interest? Question 1 options: Question 2 Suppose $5,000 is borrowed at 9% add-on interest, with monthly payments for three years. How much is paid in interest and what is the amount of each monthly payment? Question 2 options: Question 3 $2,000 is deposited into an account paying interest compounded monthly. What will the balance be after 12 years, if the annual interest rate is 1%? 2%? ... 12%? (Complete the following table.) Annual interest Balance rate, after 12 compounded years monthly 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% Question 4 Carol starts with 1 cent. Suppose that at the end of the first day, she earns 1 cent interest, for a balance of two cents. At the end of the second day, she earns two cents interest, for a balance of four cents. At the end of the third day, she earns four cents interest, for a balance of eight cents. Continuing in the same way, what will Carol's balance be at the end of 30 days? Question 4 options: Question 5 Suppose $1,200 is placed in a savings account earning 4% annual interest. Determine the balance after 10 years if interest is compounded. (a) annually (b) quarterly (c) monthly (d) daily (e) continuously Question 5 options: Question 6 Which of the following investments is most advantageous? Option1: An investment having an annual interest rate of 6.00% with interest compounded annually Option 2: An investment having an annual interest rate of 5.95% with interest compounded semiannually? Option 3: An investment having an annual interest rate of 5.90% with interest compounded daily? Question 6 options: Question 7 Dave would like to have $10,000 available for home remodeling in 6 years. How much money must Dave deposit each quarter in an account earning 8% annual interest, compounded quarterly, to reach his goal? Question 7 options: Question 8 Sam has won a lottery and will receive a lump sum payment of $100,000. He would like to experience a world-wide travel adventure and invest the leftover amount in an interest-bearing account so that he can withdraw $500 per month for 15 years. If the account pays 6% compounded monthly, how much must Sam deposit, and how much can he spend on his travel adventure? Question 8 options: Question 9 Maria is financing the purchase of a refrigerator costing $1,375. She has a 6-month loan with an annual interest rate of 9% compounded monthly. (a) What is the monthly payment? (b) Prepare an amortization table for the loan. (c) When the loan is paid off, how much interest has been paid? (d) What is the unpaid loan balance after four months? Question 9 options: Question 10 You purchase a home with a 30-year mortgage of $260,000. Mortgage A has an interest rate of 9%, a monthly payment of $2,092.02, and no points. Mortgage B has an interest rate of 8.7%, a monthly payment of $2,036.14, and 1 point. If you plan to keep the same mortgage for 15 years before relocating or refinancing, which mortgage is more advantageous? Question 10 optionsStep by Step Solution
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