Math 1309 Review for Test #3 Sections 4.1 – 4.3, 9.7, and 12.2 1. Compound Interest and Continuous Interest: You must know the formulas! Page 204 (31 – 50) Blakely Investment Company owns an office building in the commercial district of a city. As a result of the continued success of an urban renewal program, local business is enjoying a mushroom. The current market value of the property is $300,000. If the expected rate of inflation for the present market price is 10% for the next 15 years, find how long it will take for the property to be worth $600,000. 2. Annuities: Page 219 (15 – 30) Jackson deposits $100 at the end of each month in a savings account earning interest at the rate of 8% per year, compounded monthly. How much will he have in this account at the end of 6 years, assuming that he makes no withdrawals during that period? 3. Amortization and Sinking Funds: Page 230 (16 – 34) The price of a new car is $16,000. Assume an individual makes a down payment of 25% toward the
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