Question 1

Find the periodic payment that will render the sum.
-FV = $24,000,interest is 8% compounded monthly,payments made at the end of each month for 3 years

Accepted Answer

A) $1264.68 
B) $7104.88 
C) $592.07 
D) $1927.72 
A) $1264.68 
B) $7104.88 
C) $592.07 
D) $1927.72

Question 2

Find the payment necessary to amortize the loan.
-$12,800; 12% compounded monthly; 48 monthly payments

Accepted Answer

A) $1542.69 
B) $337.31 
C) $331.71 
D) $337.07 
A) $1542.69 
B) $337.31 
C) $331.71 
D) $337.07

Question 3

You can afford monthly deposits of $200 into an account that pays 8% compounded monthly.How many months will it be until you have $15,000 to buy a car? (Round up to the next higher month if not an integer.)

Accepted Answer

62 months,

Question 4

Solve the problem. Assume that the minimum payment on a credit card is the greater of $27 or 3% of the unpaid balance.
-If the annual interest rate is 15.99%,find the difference between the minimum payment and the interest owed on an unpaid balance of $748.44 that is 1 month overdue.

Accepted Answer

A) $12.54 
B) $13.10 
C) $17.03 
D) $14.03 
A) $12.54 
B) $13.10 
C) $17.03 
D) $14.03

Question 5

Find the present value of the ordinary annuity.
-Payments of $68 made quarterly for 10 years at 8% compounded quarterly

Accepted Answer

A) $1872.41 
B) $1860.17 
C) $1829.38 
D) $667.63 
A) $1872.41 
B) $1860.17 
C) $1829.38 
D) $667.63

Question 6

Solve the problem. Round dollar amounts to the nearest cent. Use 360 days.
-What is the purchase price of a 26-week T-bill with a maturity value of $1000 that earns an annual interest rate of 5.25%?

Accepted Answer

A) $1000 
B) $25.58 
C) $974.42 
D) $1025.58 
A) $1000 
B) $25.58 
C) $974.42 
D) $1025.58

Question 7

Solve the problem. Round to the nearest cent as needed.
-How long will it take for $8400 to grow to $14,600 at an interest rate of 9.4% if the interest is compounded continuously? Round the number of years to the nearest hundredth.

Accepted Answer

A) 0.59 year 
B) 0.06 year 
C) 5.88 years 
D) 58.81 years 
A) 0.59 year 
B) 0.06 year 
C) 5.88 years 
D) 58.81 years

Question 8

Use the future value formula to find the indicated value. Round to three decimal places.
-n = 10; i = 0.02; PMT = $1; FV = ?

Accepted Answer

A) $10.95 
B) $60.95 
C) $12.169 
D) $9.755 
A) $10.95 
B) $60.95 
C) $12.169 
D) $9.755

Question 9

Find the compound amount for the deposit. Round to the nearest cent.
-$15,000 at 10% compounded semiannually for 10 years

Accepted Answer

A) $39,799.47 
B) $24,433.42 
C) $38,906.14 
D) $30.000.00 
A) $39,799.47 
B) $24,433.42 
C) $38,906.14 
D) $30.000.00

Question 10

Find the compound interest earned. Round to the nearest cent.
-$700 at 8% compounded semiannually for 4 years

Accepted Answer

A) $252.34 
B) $595.65 
C) $258.00 
D) $118.90 
A) $252.34 
B) $595.65 
C) $258.00 
D) $118.90

Question 11

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.
-11.6% to decimal

Accepted Answer

A) 11.6 
B) 116 
C) 0.116 
D) 0.00116 
A) 11.6 
B) 116 
C) 0.116 
D) 0.00116

Question 12

Solve the problem. Round to the nearest cent as needed.
-Cara knows that she will need to buy a new car in 3 years.The car will cost $15,000 by then.How much should she invest now at 12%,compounded quarterly,so that she will have enough to buy a new car?

Accepted Answer

A) $10,520.70 
B) $12.594.29 
C) $11,957.91 
D) $9532.77 
A) $10,520.70 
B) $12.594.29 
C) $11,957.91 
D) $9532.77

Question 13

Provide an appropriate response.
-What amount will be in an account after 1.5 years if $4,000 is invested at 5% compounded semiannually?

Accepted Answer

The answer of Provide an appropriate response.
-What amount will be...

Question 14

A $7,000 debt is to be amortized in 15 equal monthly payments of $504.87 at 1.00% interest per month on the unpaid balance.What is the unpaid balance after the second payment?

Accepted Answer

The answer of A $7,000 debt is to be amortized...

Question 15

Solve the problem. Round to the nearest cent as needed.
-An actuary for a pension fund need to have $14.6 million grow to $22 million in 6 years.What interest rate compounded annually does he need for this investment to growth as specified.Round your answer to the nearest hundredth of a percent.

Accepted Answer

A) 0.07% 
B) 7% 
C) 7.7% 
D) 7.07% 
A) 0.07% 
B) 7% 
C) 7.7% 
D) 7.07%

Find the periodic payment that will render the sum. -FV = $24,000,interest is 8% compounded monthly,payments made at the end of each month for 3 years

Find the payment necessary to amortize the loan. -$12,800; 12% compounded monthly; 48 monthly payments

You can afford monthly deposits of $200 into an account that pays 8% compounded monthly.How many months will it be until you have $15,000 to buy a car? (Round up to the next higher month if not an integer.)

Solve the problem. Assume that the minimum payment on a credit card is the greater of $27 or 3% of the unpaid balance. -If the annual interest rate is 15.99%,find the difference between the minimum payment and the interest owed on an unpaid balance of $748.44 that is 1 month overdue.

Find the present value of the ordinary annuity. -Payments of $68 made quarterly for 10 years at 8% compounded quarterly

Solve the problem. Round dollar amounts to the nearest cent. Use 360 days. -What is the purchase price of a 26-week T-bill with a maturity value of $1000 that earns an annual interest rate of 5.25%?

Solve the problem. Round to the nearest cent as needed. -How long will it take for $8400 to grow to $14,600 at an interest rate of 9.4% if the interest is compounded continuously? Round the number of years to the nearest hundredth.

Use the future value formula to find the indicated value. Round to three decimal places. -n = 10; i = 0.02; PMT = $1; FV = ?

Find the compound amount for the deposit. Round to the nearest cent. -$15,000 at 10% compounded semiannually for 10 years

Find the compound interest earned. Round to the nearest cent. -$700 at 8% compounded semiannually for 4 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. -11.6% to decimal

Solve the problem. Round to the nearest cent as needed. -Cara knows that she will need to buy a new car in 3 years.The car will cost $15,000 by then.How much should she invest now at 12%,compounded quarterly,so that she will have enough to buy a new car?

Provide an appropriate response. -What amount will be in an account after 1.5 years if $4,000 is invested at 5% compounded semiannually?

A $7,000 debt is to be amortized in 15 equal monthly payments of $504.87 at 1.00% interest per month on the unpaid balance.What is the unpaid balance after the second payment?

Solve the problem. Round to the nearest cent as needed. -An actuary for a pension fund need to have $14.6 million grow to $22 million in 6 years.What interest rate compounded annually does he need for this investment to growth as specified.Round your answer to the nearest hundredth of a percent.

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Exam 3: Mathematics of Finance

Find the periodic payment that will render the sum. -FV = $24,000,interest is 8% compounded monthly,payments made at the end of each month for 3 years

Find the payment necessary to amortize the loan. -$12,800; 12% compounded monthly; 48 monthly payments

You can afford monthly deposits of $200 into an account that pays 8% compounded monthly.How many months will it be until you have $15,000 to buy a car? (Round up to the next higher month if not an integer.)

Solve the problem. Assume that the minimum payment on a credit card is the greater of $27 or 3% of the unpaid balance. -If the annual interest rate is 15.99%,find the difference between the minimum payment and the interest owed on an unpaid balance of $748.44 that is 1 month overdue.

Find the present value of the ordinary annuity. -Payments of $68 made quarterly for 10 years at 8% compounded quarterly

Solve the problem. Round dollar amounts to the nearest cent. Use 360 days. -What is the purchase price of a 26-week T-bill with a maturity value of $1000 that earns an annual interest rate of 5.25%?

Solve the problem. Round to the nearest cent as needed. -How long will it take for $8400 to grow to $14,600 at an interest rate of 9.4% if the interest is compounded continuously? Round the number of years to the nearest hundredth.

Use the future value formula to find the indicated value. Round to three decimal places. -n = 10; i = 0.02; PMT = $1; FV = ?

Find the compound amount for the deposit. Round to the nearest cent. -$15,000 at 10% compounded semiannually for 10 years

Find the compound interest earned. Round to the nearest cent. -$700 at 8% compounded semiannually for 4 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. -11.6% to decimal

Solve the problem. Round to the nearest cent as needed. -Cara knows that she will need to buy a new car in 3 years.The car will cost $15,000 by then.How much should she invest now at 12%,compounded quarterly,so that she will have enough to buy a new car?

Provide an appropriate response. -What amount will be in an account after 1.5 years if $4,000 is invested at 5% compounded semiannually?

A $7,000 debt is to be amortized in 15 equal monthly payments of $504.87 at 1.00% interest per month on the unpaid balance.What is the unpaid balance after the second payment?

Solve the problem. Round to the nearest cent as needed. -An actuary for a pension fund need to have $14.6 million grow to $22 million in 6 years.What interest rate compounded annually does he need for this investment to growth as specified.Round your answer to the nearest hundredth of a percent.

Linear Equations and Graphs

Linear Inequalities and Linear Programming

Logic, sets, and Counting

Probability

Markov Chains

Limits and the Derivative

Mathematical Functions and Limits

Filters