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Math m. L\ 0&9 \ko Exam ll /\
February 11,1004 Ilplace a principal offSSOO in a savings account with simple interest at a rate of 4° 0 for
seven years. At the end of this period, how much interest have I earned? M Simple interest is an example of liti’li a)!” I {La H’éswwwvi‘lc growth. 4/ A bank advertises 6% annual interest rate (compounded quarterly) for new customers who open an account with principal of at least $400. I open one of these accounts with
initial balance of $1000. What is the nominal rate? (D 070 1/ 1/ What is the effectiVe rate?
 a ‘ﬁ .00) _ s 
C‘ T L‘Ol5 0V ‘50]?g ‘ﬁ/ How much interest have I earned after 5 years? , .\m
AiPU'J'L) ‘50
0>l%0(Hnm€3 . ’,e {3‘ {SM q 13%!qu —*~«—— " 7
:= new We 5395.829le / W An example of a sinking fund is: depositing $300 into a savingsadcount. taking out a ﬁxed amount of money from an account at the start of each
quarter to help pay for school. a) @ Buying a savings bond now to help me buy a house in 10 years.
2/ Money that can not swim. ‘/
h T e maturity date of a bond is:
X the date at which it is eligible to vote. 1’ b) x" the date at which it ceases to earn more money. 0) The expiration dateit begins to decay at this time. If I have savings account which advertises a 12% annual interest rate compounded every
other month, what is the percent of interest being paid every period? (X .18
/ T (_ 7' Q 070
Suppose I want to save up for a vacation by opening a savings account which advertises
(Wempounded 3 times a year. If I place $100 at the start of each period, how W muc WillIhave aﬁer3 years? €h0ﬁi‘ WUJQ its? UK I . V\ . ...
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 Spring '04
 Knight
 Math

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