1. Calculate simple interest using the following:
Principal = $225.64
Interest Rate = 2.49%
Time = February 3, 2011 March 4, 2011
2. On July 10, 1998, Jim Tedd borrowed $950 and agreed to repay it with interest at 15% in 120
days. What amount must he repa
14. A debt of $2,400 due in 2 months is to be paid by 3 equal payments due at month three,
five, and seven months. Money is worth 10%. What is the size of each payment. Let the
comparison date be seven months.
15. A woman owes (a) $1,000 due in four month
50. Melvin Indecision has difficulty deciding whether to put his savings in Arvest Bank or
Simmons First Bank. Arvest offers 10% interest compounded semiannually. Simmons First
offers 8% interest compounded quarterly. Melvin has $10,000 to invest. He expe
7. Find the simple interest on $5,600 at 7% for 55 days. _
8. What is the maturity value of this note?_
9. How much time is required for $250 to yield $4.25 interest at 8%?
a. a)_years b) _months c)_days
10. What principal will accumulate to $5,500 in two
34. A man decides to make a single deposit of $5,000 in an account that pays interest of 8%
compounded semiannually. The money will be left on deposit for 4 years
35. What are the compound amount and the compound interest at the end of 1 years if $10,000
28. Oakwood Plowing Company purchased two new plows for the upcoming winter. In 200
days, Oakwood must make a single payment of $23,200 to pay for the plows. As of today,
Oakwood has $22,500. If Oakwood puts the money in a bank today, what rate of interes
57. What is the present value of an annuity of $500 payable at the end of each month for 30
years if money is worth 7% compounded monthly?
Type of Investment: Ordinary Annuity
Compounding Period: Monthly
N: 30*12 = 360
I: 7/12 %
PMT: 500
FV: 0
PV: ? =
58.
42. Find PV of FV according to discount stipulations
Type of Investment: Lump Sum
Compound period: Monthly
Number of Compound Periods: 50
Interest rate per compound period: 18/12 = 1 %
Beginning Value/ Present Value =?
Pmt= $0
Principal plus Interest= Fut
46. Original Debt (a)
Type of Investment: Lump Sum
Compound Period: Quarterly
N: from year 4 to year 9 = 5 * 4 = 20
I: 6% / 4 = 1 %
PMT: 0
PV: 5000
FV: ? =
47. Today is January 1. Sally plans to take a special vacation three years from today. She plans
to
21. Diane Van Os decided to buy a new car since her credit union was offering such low interest
rates. She borrowed $32,000 at 3.5% on December 26, 2012 and paid it off February 21, 2014.
How much did she pay in interest? (10-14)
22. On September 12, Jody