1. Find the simple interest earned on $2200 at 7.5% for 18 months. Then find the future value.
2. Compute the future value of an investment of $5600 compounded monthly at 7.5% for 10 years.
3. Find the present value that will result in $30,000 in 6 years at 4.72% compounded quarterly.
4. Find the effective annual yield for a nominal rate of 6% compounded quarterly. Then find the effective annual yield for a nominal rate of 8% compounded daily. (Round to the nearest hundredth of a percent.)
5. Estimate the future price due to inflation (continuous compounding) of an item currently priced at $1750, with a constant inflation rate of 4.7%, after 15 years. Then estimate the number of years to double in value.
8. What is the monthly payment on a loan of $1680 for a period of 10 months if 9% add-on interest is charged?
9. On July 1 (billing date), Alexandra’s credit card balance was $375.80.The following transactions were made.
July 5 Payment $150.00
July 10 Clothing purchase 74.35
July 18 Grocery purchase 123.50
July 28 Restaurant meal 42.50
A. Determine the average daily balance.
B. Determine the finance charge due on August 1, the next billing date, if the interest rate is 1.3% per month.
C. What is the new balance on August 1?
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