Finance HW 1

by Todd Scarlett

| 12 QuestionsNote from the author:

Simple and Compound interest, including effective rates

1

1

FInd the maturity value of a simple interest loan of $400 at 2.1% for 9 years

A $475.59

B $475.60

C $336.42

D $336.41

2

1

Find the accumulated amount of an investment of $413.99 compounded quarterly at 4.25% for 8.5 years

A $12,823.35

B 2.02481E13

C $593.00

D $8,110.99

3

1

Find the accumulated amount of an investment of $150 at simple interest rate of 1.5% for 7 months

A $165.75

B $1725.01

C $281.25

D $151.31

4

1

Find the principal if the accumulated amount is $8499.81 after 3 years compounded monthly at r = 2%

A $8005.18

B $8005.20

C $8005.22

D $8005.24

5

1

Find the effective rate if the nominal rate is 3.5% compounded weekly

A 3.56%

B 2.86%

C 1.03%

D 1.05%

6

1

Find the simple interest rate if $500 accumulated to $683.70 for an 11 year term

A 3.34%

B 1.97%

C 2.9%

D 2.77%

7

1

How long would it take $120 to double at a simple interest rate of 3%?

A About 40 years

B About 33 years

C About 5 years

D About 14 years

8

1

Find time of a compounded investment if A = 262.94, P = 190.00, r = 2.2%, and m = 5

A t = 66

B t = 13.2

C t = 74

D t = 14.8

9

1

Find A if P = $8000, r = 0.9%, t = 11 months, and m = 2.

A $8830.57

B $15,809.98

C $8066.12

D $13,919.19

10

1

Find the prinicipal of a simple interest loan if A = $831.44, r = 0.4%, and time is 9 1/2 years

A $602

B $863

C $801

D $828

11

1

FInd the effective rate if the nominal rate is 4.1% compounded daily

A 4.12%

B 4.13%

C 4.14%

D 4.15%

12

1

Find time if A = $884.94, P = $750, compounded monthly at 2.3%

A About 9.1 years

B About 7.2 years

C About 6.5 years

D About 10.1 years

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