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Quiz 1
1(0.5%). Compute the compound amount after 1 year for $100 invested at 6% interest
compounded monthly. What simple interest rate will yield the same amount in 1 year?
1) F=(1+0.005)^12*100=$106.17 2)106.17=(1+r)*100 => r=.0617=6.17%
2(0.5%). On January 1, 2005, Tome decided to save for exactly 1 year for a 10
‐
speed bike by
depositing $10 at the end of each month into a saving account paying 6% interest compounded
monthly. How much did he accumulate?
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This note was uploaded on 04/08/2008 for the course MATH 105Q taught by Professor Arellano during the Fall '07 term at UConn.
 Fall '07
 Arellano
 Math

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