Practice Exam

# 78whatannualsimplerateofinterest

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Unformatted text preview: __ N = a)_______________ b) __________________ I% = ______________ __________________ PV = _______________ __________________ PMT = _______________ __________________ FV = _______________ _________________ P/Y = _______________ __________________ C/Y = _______________ _________________ 8) If you buy a 26 week T- bill with a maturity value of \$10,000 for \$9,693.78, what annual simple rate of interest will you earn? ( Express answer as a percentage, correct to three decimal places.) 2 9) If you sell your car to someone for \$4000 and agree to finance it at 1% per month on the unpaid balance. a) How much should you receive each month to amortize the loan in 18 months?______________________________________________ b) How much interest will you receive? _______________________ N = _______________ b) I% = _______________ PV = _______________ PMT = _______________ FV = _______________ P/Y = _______________ C/Y = _______________ 10) If \$1 had been placed in a bank account at the end of year 1200 and forgotten until the end of the year 2000, how much would be in the account at the end of the year 2000, a) if the money earned 2% simple interest? _________________________ b) if the money earned 2% compounded annually?__________________________ a) b) N = _______________ I% = _______________ PV = _______________ PMT = _______________ FV = _______________ P/Y = _______________ C/Y = _______________ 11) How long will it take money to double if it is invested at :...
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