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Chp 4 examples - Pt1

# Chp 4 examples - Pt1 - of 5 years Chapter 4 examples Part 1...

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Example 1 A friend borrows \$500 from you at a simple interest rate of 9% per year for three years. a. What is simple interest your friend pays at the end of each year? b. At the end of three years, how much will your friend have paid in total? Chapter 4 examples - Part 1

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Example 2 Suppose you deposit \$1000 in a savings account at a bank at 10% interest rate per year. What is the balance after four years? Chapter 4 examples - Part 1
Example 3 (Example 2 revisited) Suppose you deposit \$1000 in a savings account at a bank at 10% interest rate per year. What is the balance after four years? Chapter 4 examples - Part 1

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Example 4 Jim loans Juanita \$10,000 with interest compounded at a rate of 6% a year. How much money will Juanita owe Jim if she repays the entire load at the end

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Unformatted text preview: of 5 years? Chapter 4 examples - Part 1 Example 5 How much money should you deposit today into a savings account that pays 8% interest annually if you want to have \$2,000 at the end of three years? Chapter 4 examples - Part 1 Example 6 What is the present equivalent of \$18,000 to be received in 15 years when the interest rate is 7% per year? Chapter 4 examples - Part 1 Example 7 Ashlea purchased 100 shares of Microsoft at a price of \$25 per share. She hopes to double her investment. How long will she have to wait if the stock price increases at a rate of 10% per year? Chapter 4 examples - Part 1...
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Chp 4 examples - Pt1 - of 5 years Chapter 4 examples Part 1...

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