Questions for Finite Math sections 2.1, 2.2, and 2.3

2.1 questions 2,5,6,8,11,12, and 17 - Simple Interest, Savings Accounts, and Simple Loans

Compute the simple interest for the specified length of time and the future value at the end of that time. Round all answers to the nearest cent in the questions below.

#2 - $1,000 is invested for 10 years at 4% per year.

#5 - $20,200 is invested for 6 months at 5% per year.

#6 - $10,100 is invested for 3 months at 11% per year.

#8 - You borrow $6,000 for 5 months at 9% per year.

Find the present value of the given investment in the questions below.

#11 - An investment earns 2% per year and is worth $10,000 after 5 years.

#12 - An investment earns 5% per year and is worth $20,000 after 2 years.

Compute the specified quantity. Round all answers to the nearest month, the nearest cent, or the nearest 0.001%, as appropriate in the question below.

#17 - Simple Loans You take out a 6-month, $5,000 loan at 8% annual simple interest. How much would you owe at the end of the 6 months?

2.2 questions 1,3,6,11,14, and 29 - Compound Interest

Calculate, to the nearest cent, the future value of an investment of $10,000 at the stated interest rate after the stated amount of time in the questions below.

#1 - 0.2% per month, compounded monthly, after 15 months

#3 - 0.2% per month, compounded monthly, after 10 years

#6 - 4% per year, compounded annually, after 8 years

Calculate, to the nearest cent, the present value of an investment that will be worth $1,000 at the stated interest rate after the stated amount of time in the questions below.

#11 - 10 years, at 5% per year, compounded annually

#14 - 10 years, at 5.3% per year, compounded quarterly

Application question below.

#29 - Investments When I was considering what to do with my $10,000 lottery winnings, my broker suggested that I invest half of it in gold, the value of which was growing by 10% per year, and the other half in certificates of deposit (CDs), which were yielding 5% per year, compounded every 6 months. Assuming that these rates are sustained, how much will my investment be worth in 10 years?

2.3 questions 1,2,3,8,9,13, and 14 - Sinking Funds and Annuities

Find the amount accumulated in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits.) in the questions below.

#1 - $100 deposited monthly for 10 years at 5% per year

#2 - $150 deposited monthly for 20 years at 3% per year

#3 - $1,000 deposited quarterly for 20 years at 7% per year

Find the periodic payments necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits.) in the questions below.

#8 - $20,000 in a fund paying 3% per year, with monthly payments for 10 years

#9 - $75,000 in a fund paying 6% per year, with quarterly payments for 20 years

Find the present value of the annuity account necessary to fund the given withdrawals. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals.) in the questions below.

#13 - $500 per month for 20 years, if the account earns 3% per year

#14 - $1,000 per month for 15 years, if the account earns 5% per year