Exam 3: The Mathematics of Finance

Find the simple interest on a $1,700 investment made for 3 months at an interest rate of 17% per year. What is the future value INT = $ __________ FV = $ __________

Determine the quarterly payment necessary to accumulate $100,000 in a fund paying 7% per year, compounded quarterly, for 19 years. Assume end-of-period deposits and compounding at the same intervals as deposits. (Round your answer to the nearest cent.) ​ $__________ per quarter

Calculate, to the nearest 0.1%, what annual interest rate would be required if you invested $6,000 in Apple stock and ended up with $15,622 when you sold the stock after 5 years Assume that interest was compounded quarterly. ?

Calculate, to the nearest cent, the future value of an investment of $12,000 at 0.4% per month, compounded monthly, after 8 years. ​ ​FV​ = $ __________

Find the effective annual interest rate of 10% compounded daily. Assume 365 days per year. Round your answer to the nearest 0.01%. ​ $r _ { \text {eff } } =$ __________ %

You are offered three investments. The first promises to earn 19% compounded annually, the second will earn 18.5% compounded quarterly, and the third will earn 18% compounded weekly. What is the best investment The best investment is the __________ investment.

Determine the periodic payment for a loan of $300,000 borrowed at 3% for 30 years, with quarterly payments. Round your answer to the nearest cent. ​ $__________

Find the effective annual interest rate of 4% compounded quarterly. ​

Calculate, to the nearest cent, the future value of an investment of $14,000 at 4.25% per year, compounded quarterly (4 times per year), after 7 years.

Find the amount accumulated in the increasing annuity of $1,600 deposited quarterly for 10 years at 6% per year. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent. ​ $__________

You hear on the evening news:"The economy last year grew by 6% from the previous year, and this was the second year in a row in which the economy showed a 6% growth." This means that, in dollar terms, the economy grew more last year than the year before. Why

Calculate, to the nearest cent, the present value of an investment that will be worth $14,000 after 5 years, at 7% compounded monthly. ​ PV​ = $__________

Find the amount accumulated in an increasing annuity in which $200 is deposited monthly for 20 years at 3% per year in an account containing $10,000 at the start. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent. ​ $F V =$ $ __________.

At auction on January 11, 1999, 1 year US Treasury Bills were sold at a discount of 5.348%. What was the annual yield rounded to the nearest 0.001% r = __________ %

Determine the amount of money, to the nearest dollar, you must invest at 5.8% per year, compounded semiannually, so that you will be a millionaire in 23 years time. Round your answer to the nearest dollar. ​ $ __________

During a prolonged recession, property values on Long Island depreciated by 4% every six months. If my house cost $210,000 originally, how much was it worth 6 years later Round your answer to the nearest cent. $ __________

Calculate, to the nearest cent, the future value of an investment of $7,000 at 1.5% per year, compounded quarterly, after 7 years. ​ $ __________

Find the simple interest on a $3,000 investment made for 6 months at an interest rate of 8% per year. What is the future value INT = $ __________ FV = $ __________

Did Apple's stock undergo simple interest increase in the period December, 1997, through March, 2000 Month Dec. 1997 Aug. 1999 Mar. 2000 May 2000 Aug. 2000 Dec. 2000 Monthly Price 3.27 16.31 33.75 21 30.47 7.44 Month Jan. 2002 Mar. 2003 Oct. 2003 Nov. 2004 Feb. 2005 Aug. 2005 Monthly Price 12.36 7.07 11.44 33.53 44.86 45.74 $A = 3.27$ , $B = 33.75$

Calculate, to the nearest cent, the future value of an investment of $12,000 at 7% per year, compounded annually, after 11 years. ​ ​FV​ = $__________