1. On January 1, 2014, a deposit was made into a savings account paying interest compounded quarterly. The balance on January 1, 2017 was $10,000, and the balance on April 1, 2017 was $10,100. How large was the deposit?
2. During the 1990s, a deposit was made into a savings account paying 4% interest compounded quarterly. On January 1, 2017, the balance was $2020. What was the balance on October 1, 2016?
3. Suppose that a principal of $100 is deposited for 5 years in a savings account at 6% interest compounded semiannually. Which of items (a)-(d) can be used to fill in the blank in the following statement? (Note: Before computing, use your intuition to guess the correct answer.)
If the _______ is doubled, then the future value will double.
(a) Principal
(b) Interest rate
(c) Number of interest periods per year
(d) Number of years
4. Suppose that a principal of $100 is deposited for 5 years in a savings account at 6% simple interest. Which of items (a)-(c) can be used to fill in the blank in the following statement? (Note: Before computing, use your intuition to guess the correct answer.)
If the _______ is doubled, then the future value will double.
(a) Principal
(b) Interest rate
(c) Number of years