Math 1307 Review for Test #1 Chapter 3: Mathematics of …
Math 1307 Review for Test #4 Chapters 21 & 22: Your Money and Resources
You will be given a formula sheet to use and you may also use any calculator to help you with this test.
You must change all annual interest rates from percents to decimals. All times must be expressed in terms of years.
Choose the appropriate formula and write it down. Then fill in with the appropriate numerical values. Then calculate the result and circle you final answer.
1. Suppose you pay $4,000 for a simple interest investment that will be worth $4,270 in 8 months. What
is the simple interest rate earned on this investment?
2. $6,000 is deposited into an account that pays 9% compounded monthly. How much will be in this
account after 5 years?
3. At the end of 8 years, the balance owed on a loan is $9,482.40. What was the original amount of the
loan if the bank charges 8% compounded continuously?
4. How long will it take an investment of $5,000 to grow to $7,500 if the investment company pays 8%
compounded continuously?
5. Find the annual percentage yield (APY or effective rate) for money invested at 9% compounded
monthly.
6. Use the Rule of 72 to estimate how long it will take $15,000 to double if it is invested at 6.25% annual
interest rate.
7. Deposits of $1,200 are made quarterly into an ordinary annuity earning 7% compounded quarterly.
What is the balance in the account at the end of 20 years?
8. Parents want to have $120,000 in 15 years for their child’s college fund. How much should be deposited
monthly into an account paying 6% compounded monthly to grow to the desired amount?
9. Find the amount you must deposit now into an ordinary annuity in order to receive $250 per month for
4 years if money is worth 8.4% compounded monthly.
10. A company buys a copy machine for $12,000. It amortizes the cost over 5 years at 12% compounded
monthly. How much are the monthly payments?
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.