Question 1

Find the effective annual interest rate of 13% compounded monthly. Round your answer to the nearest 0.01%.
​ $r _ { \text {eff } } =$ __________ %

Accepted Answer

The answer of Find the effective annual interest rate of...

Question 2

Your total payment on a 8-year loan, which charged 7.5% simple interest, amounted to $36,000. How much did you originally borrow  Round your answer to the nearest cent.
 
$__________

Accepted Answer

The answer of Your total payment on a 8-year loan,...

Question 3

At auction on August 18, 2005, 3-month T-bills were sold at a discount of 3.585%. What was the simple annual yield  Round answer to the nearest 0.001%.
 
__________%

Accepted Answer

The answer of At auction on August 18, 2005, 3-month...

Question 4

Find the present value of a decreasing annuity necessary to fund withdrawals of $2,500 per quarter for 20 years, if the annuity earns 4% per year. (Assume end-of-period deposits and compounding at the same intervals as deposits). Round your answer to the nearest cent.

Accepted Answer

A)  $P V = \$ 137,220.52$ 
B)  $P V = \$ 175,298.95$ 
C)  $P V = \$ 75,500.91$ 
D)  $P V = \$ 45,113.88$ 
E)  $P V = \$ 75,501.91$ 
A)  $P V = \$ 137,220.52$ 
B)  $P V = \$ 175,298.95$ 
C)  $P V = \$ 75,500.91$ 
D)  $P V = \$ 45,113.88$ 
E)  $P V = \$ 75,501.91$

Question 5

Doubling the frequency of compounding in a compound interest investment will not double the amount of the interest.

Accepted Answer

A) True 
 B)False

Question 6

Find the periodic withdrawal for an annuity of $240,000 at 6%, paid out quarterly for 25 years. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent.

Accepted Answer

A)  $P M T = \$ 4,648.94$ 
B)  $P M T = \$ 1,048.94$ 
C)  $P M T = \$ 6,205.22$ 
D)  $P M T = \$ 3,095.97$ 
E)  $P M T = \$ 1,546.32$ 
A)  $P M T = \$ 4,648.94$ 
B)  $P M T = \$ 1,048.94$ 
C)  $P M T = \$ 6,205.22$ 
D)  $P M T = \$ 3,095.97$ 
E)  $P M T = \$ 1,546.32$

Question 7

Inflation has been running 6% per year. A car now costs $32,000. How much would it have cost 9 years ago

Accepted Answer

A) $18,940.00 
B)  $18,335.83 
C)  $19,090.75 
D)  $18,940.75 
E)  None of these 
A) $18,940.00 
B)  $18,335.83 
C)  $19,090.75 
D)  $18,940.75 
E)  None of these

Question 8

When I was considering what to do with my $7,500 Lottery winnings, my broker suggested I invest half of it in gold, whose value was growing by 11% per year, and the other half in certificates of deposit (CDs), which were yielding 9% per year compounded every 6 months. Assuming that these rates are sustained, how much will my investment be worth in 7 years  Round your answer to the nearest cent.
 
$ __________

Accepted Answer

The answer of When I was considering what to do...

Question 9

Find the periodic withdrawal for an annuity of $100,000 at 3%, paid out quarterly for 25 years. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent.
​
$__________

Accepted Answer

The answer of Find the periodic withdrawal for an annuity...

Question 10

While shopping for a car loan, you get the following offers: Solid Savings & Loan is willing to loan you $30,000 at 14% interest for 6 years. Fifth Federal Bank & Trust will loan you the $30,000 at 10% for 4 years. Both require monthly payments. You can afford $690 per month. Which loan, if either, can you take

Accepted Answer

Solid Savi

Question 11

My recent marketing idea, the Miracle Algae Growing Kit, has been remarkably successful, with monthly sales growing by 4% every 6 months over the past 8 years. Assuming that I sold 250 kits the first month, what is the present rate of sales  Round your answer to the nearest whole number.
 
__________ kits per month

Accepted Answer

The answer of My recent marketing idea, the Miracle Algae...

Question 12

If Brazil has an annual inflation rate of 11% and an item will cost 130,000 reals in 5 years, what does that same item cost now  Round to the nearest real.
 
__________ reals

Accepted Answer

The answer of If Brazil has an annual inflation rate...

Question 13

Find the simple interest on a $5,000 investment made for 1 year at an interest rate of 8% per year. What is the future value 
 
INT = $ __________
 
 FV = $ __________

Accepted Answer

The answer of Find the simple interest on a $5,000...

Question 14

At what annual (simple interest) rate did the population of some county increase from 1950 to 2000  Round your answer to one decimal place.
     
__________%

Accepted Answer

The answer of At what annual (simple interest) rate did...

Question 15

Find the amount accumulated in the increasing annuity in which $2,000 is deposited quarterly for 10 years at 7% per year. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent.
​
$__________

Accepted Answer

The answer of Find the amount accumulated in the increasing...

Question 16

Calculate to the nearest 0.01% your annual percentage loss (on a simple interest basis) if you had bought Apple stock in March, 2000, and sold in January, 2002. $$\begin{array} { | l | l | l | l | l | l | l | } 
\hline \text { Month } & \text { Dec. } 1997 & \text { Aug. } 1999 & \text { Mar. } 2000 & \text { May } 2000 & \text { Aug. } 2000 & \text { Dec. } 2000 \
\hline \begin{array} { l } 
\text { Monthly } \
\text { Price }
\end{array} & 33.70 & 16.31 & 12.34 & 21 & 30.37 & 7.44 \
\hline \text { Month } & \text { Jan. } 2002 & \text { Mar. } 2003 & \text { Oct. } 2003 & \text { Nov. } 2004 & \text { Feb. } 2005 & \text { Aug. } 2005 \
\hline \begin{array} { l } 
\text { Monthly } \
\text { Price }
\end{array} & 12.36 & 7.07 & 11.44 & 33.53 & 44.86 & 45.74 \
\hline
\end{array}$$ ​
__________%

Accepted Answer

The answer of Calculate to the nearest 0.01% your annual...

Question 17

Your total payment on a 8-year loan, which charged 7.5% simple interest, amounted to $33,000. How much did you originally borrow  Round your answer to the nearest cent.

Accepted Answer

A)  $P V = \$ 20,635.00$ 
B)  $P V = \$ 20,627.00$ 
C)    $P V = \$ 20,624.00$ 
D)    $P V = \$ 20,625.00$ 
E)  $P V = \$ 20,630.00$ 
A)  $P V = \$ 20,635.00$ 
B)  $P V = \$ 20,627.00$ 
C)    $P V = \$ 20,624.00$ 
D)    $P V = \$ 20,625.00$ 
E)  $P V = \$ 20,630.00$

Question 18

Given that $F V = 23 t + 500$ , for what interest rate is this the equation of future value (in dollars) as a function of time t (in years)  (Round your answer to the nearest 0.1%.)
 
__________%

Accepted Answer

The answer of Given that \(F V = 23 t...

Question 19

My recent marketing idea, the Miracle Algae Growing Kit, has been remarkably successful, with monthly sales growing by 5% every 6 months over the past 3 years. Assuming that I sold 450 kits the first month, what is the present rate of sales  Round your answer to the nearest whole number. ?

Accepted Answer

A) 603 kits per month 
B)  524 kits per month 
C)  485 kits per month 
D)  486 kits per month 
E)  522 kits per month 
A) 603 kits per month 
B)  524 kits per month 
C)  485 kits per month 
D)  486 kits per month 
E)  522 kits per month

Question 20

A 6-year bond costs $9,000 and will pay a total of $2,700 interest over its lifetime. What is its annual interest rate  ?

Accepted Answer

A) 4% 
B)  14% 
C)  30% 
D)  6% 
E)  5% 
A) 4% 
B)  14% 
C)  30% 
D)  6% 
E)  5%

Find the effective annual interest rate of 13% compounded monthly. Round your answer to the nearest 0.01%. $r _ { \text {eff } } =$ __________ %

Your total payment on a 8-year loan, which charged 7.5% simple interest, amounted to $36,000. How much did you originally borrow Round your answer to the nearest cent. $__________

At auction on August 18, 2005, 3-month T-bills were sold at a discount of 3.585%. What was the simple annual yield Round answer to the nearest 0.001%. __________%

Find the present value of a decreasing annuity necessary to fund withdrawals of $2,500 per quarter for 20 years, if the annuity earns 4% per year. (Assume end-of-period deposits and compounding at the same intervals as deposits). Round your answer to the nearest cent.

Doubling the frequency of compounding in a compound interest investment will not double the amount of the interest.

Find the periodic withdrawal for an annuity of $240,000 at 6%, paid out quarterly for 25 years. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent.

Inflation has been running 6% per year. A car now costs $32,000. How much would it have cost 9 years ago

Find the periodic withdrawal for an annuity of $100,000 at 3%, paid out quarterly for 25 years. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent. $__________

If Brazil has an annual inflation rate of 11% and an item will cost 130,000 reals in 5 years, what does that same item cost now Round to the nearest real. __________ reals

Find the simple interest on a $5,000 investment made for 1 year at an interest rate of 8% per year. What is the future value INT = $ FV = $

At what annual (simple interest) rate did the population of some county increase from 1950 to 2000 Round your answer to one decimal place. __________%

Find the amount accumulated in the increasing annuity in which $2,000 is deposited quarterly for 10 years at 7% per year. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent. $__________

Your total payment on a 8-year loan, which charged 7.5% simple interest, amounted to $33,000. How much did you originally borrow Round your answer to the nearest cent.

Given that $F V = 23 t + 500$ , for what interest rate is this the equation of future value (in dollars) as a function of time t (in years) (Round your answer to the nearest 0.1%.) __________%

My recent marketing idea, the Miracle Algae Growing Kit, has been remarkably successful, with monthly sales growing by 5% every 6 months over the past 3 years. Assuming that I sold 450 kits the first month, what is the present rate of sales Round your answer to the nearest whole number. ?

A 6-year bond costs $9,000 and will pay a total of $2,700 interest over its lifetime. What is its annual interest rate ?

Functions and Applications

Nonlinear Functions and Models

Systems of Linear Equations and Matrices

Matrix Algebra and Applications

Linear Programming

Sets and Counting

Probability

Random Variables and Statistics

Introduction to the Derivative

Techniques of Differentiation

Applications of the Derivative

The Integral

Further Integration Techniques and Applications of the Integral

Functions of Several Variables

Trigonometric Models

Filters

Exam 3: The Mathematics of Finance

Find the effective annual interest rate of 13% compounded monthly. Round your answer to the nearest 0.01%. ​ reff =r _ { \text {eff } } =reff ​= __________ %

Your total payment on a 8-year loan, which charged 7.5% simple interest, amounted to $36,000. How much did you originally borrow Round your answer to the nearest cent. $__________

At auction on August 18, 2005, 3-month T-bills were sold at a discount of 3.585%. What was the simple annual yield Round answer to the nearest 0.001%. __________%

Find the present value of a decreasing annuity necessary to fund withdrawals of $2,500 per quarter for 20 years, if the annuity earns 4% per year. (Assume end-of-period deposits and compounding at the same intervals as deposits). Round your answer to the nearest cent.

Doubling the frequency of compounding in a compound interest investment will not double the amount of the interest.

Find the periodic withdrawal for an annuity of $240,000 at 6%, paid out quarterly for 25 years. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent.

Inflation has been running 6% per year. A car now costs $32,000. How much would it have cost 9 years ago

Find the periodic withdrawal for an annuity of $100,000 at 3%, paid out quarterly for 25 years. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent. ​ $__________

If Brazil has an annual inflation rate of 11% and an item will cost 130,000 reals in 5 years, what does that same item cost now Round to the nearest real. __________ reals

Find the simple interest on a $5,000 investment made for 1 year at an interest rate of 8% per year. What is the future value INT = $ __________ FV = $ __________

At what annual (simple interest) rate did the population of some county increase from 1950 to 2000 Round your answer to one decimal place. __________%

Find the amount accumulated in the increasing annuity in which $2,000 is deposited quarterly for 10 years at 7% per year. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent. ​ $__________

Your total payment on a 8-year loan, which charged 7.5% simple interest, amounted to $33,000. How much did you originally borrow Round your answer to the nearest cent.

Given that FV=23t+500F V = 23 t + 500FV=23t+500 , for what interest rate is this the equation of future value (in dollars) as a function of time t (in years) (Round your answer to the nearest 0.1%.) __________%

My recent marketing idea, the Miracle Algae Growing Kit, has been remarkably successful, with monthly sales growing by 5% every 6 months over the past 3 years. Assuming that I sold 450 kits the first month, what is the present rate of sales Round your answer to the nearest whole number. ?

A 6-year bond costs $9,000 and will pay a total of $2,700 interest over its lifetime. What is its annual interest rate ?

Functions and Applications

Nonlinear Functions and Models

Systems of Linear Equations and Matrices

Matrix Algebra and Applications

Linear Programming

Sets and Counting

Probability

Random Variables and Statistics

Introduction to the Derivative

Techniques of Differentiation

Applications of the Derivative

The Integral

Further Integration Techniques and Applications of the Integral

Functions of Several Variables

Trigonometric Models

Filters

Find the effective annual interest rate of 13% compounded monthly. Round your answer to the nearest 0.01%. $r _ { \text {eff } } =$ __________ %

Find the periodic withdrawal for an annuity of $100,000 at 3%, paid out quarterly for 25 years. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent. $__________

Find the simple interest on a $5,000 investment made for 1 year at an interest rate of 8% per year. What is the future value INT = $ FV = $

Find the amount accumulated in the increasing annuity in which $2,000 is deposited quarterly for 10 years at 7% per year. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent. $__________

Given that $F V = 23 t + 500$ , for what interest rate is this the equation of future value (in dollars) as a function of time t (in years) (Round your answer to the nearest 0.1%.) __________%