Exam 3: Mathematics of Finance

Solve the problem. -The State Employees' Credit Union offers a 1-year certificate of deposit with an APY (or effective rate)of 5.5%. If interest is compounded quarterly,find the actual interest rate.Round to the nearest tenth of a percent.

You deposit $130 each month into a savings account that pays 5.5% compounded monthly.How much interest will you have earned after 8 years?

Convert the given interest rate to decimal form if it is given as a percentage, and to a percentage if it is given in decimal form. -0.05 to percent

Solve the problem. Round dollar amounts to the nearest cent. Use 360 days. -Polson Associates bought a new computer system. To pay for the system, they borrowed $41,950 from the bank at interest for 130 days. Find the simple

Use the average daily balance method to compute the amount of interest that will be charged at the end of the billing cycle. Use a 365-day year. -Month: May (31 days)Previous month's balance: $960

What is the annual percentage yield (APY) for money invested at the given annual rate? Round results to the nearest hundredth of a percent. -6% compounded quarterly

What is the annual percentage yield (APY) for money invested at the given annual rate? Round results to the nearest hundredth of a percent. -3.5% compounded continuously.

Solve the problem. Assume that simple interest is being calculated in each case. Round your answer to the nearest cent. -John Lee's savings account has a balance of $4466.After 15 months,what will the amount of interest be at 2.8% per year?

What is the future value of an ordinary annuity at the end of 3 years if $200 is deposited each quarter into an account earning 6% compounded quarterly?

Convert the given interest rate to decimal form if it is given as a percentage, and to a percentage if it is given in decimal form. -0.05% to decimal

A $90,000 home was financed by making a 20% down payment and signing a 30-year mortgage at 6.25% annual interest compounded monthly for the unpaid balance.The first payment is $443.32.How much of the first month's payment will apply towards reducing the principal?

Use the formula A = P(1 + rt) to find the indicated quantity. -A = $16,400; r = 10%; 90 days.Find P.

Find i (the rate per period) and n (the number of periods) for the annuity. -Monthly deposits of $1600 are made for 6 years into an annuity that pays 9% compounded monthly.

Solve the problem. Round to the nearest cent as needed. -The bacteria in a 11-liter container double every 2 minutes.After 53 minutes the container is full.How long did it take to fill a quarter of the container?

Find the rate of interest required to achieve the conditions set forth. -A = $32,000 P = $8,000 T = 20 years compounded annually

Use I = Prt for simple interest to find the indicated quantity. -P = $13,500; t = 4 months; I = $517.50.Find r.

Provide an appropriate response. -How much should you invest now at 6% compounded semiannually to have $8,500 to buy a car in 2.5 years?

Solve the problem. Round to the nearest cent as needed. -The monthly payments on a $73,000 loan at 13% annual interest are $807.38.How much of the first monthly payment will go toward the principal?

Find the rate of interest required to achieve the conditions set forth. -A = $32,000 P = $8,000 T = 20 years compounded quarterly

Find the compound interest earned. Round to the nearest cent. -$600 at 5% compounded quarterly for years