math112 s04 exam2 - affghhgee~eerr”“”i ‘ 1 Math m L...

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Unformatted text preview: affghhgee~eerr”“”i ' ‘ 1) 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 date-it 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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