Financial Algebra Advanced Algebra With Financial Applications 2nd Edition Robert Gerver, Richard J. Sgroi - Solutions

How much more does $1,000 earn in 8 years, compounded daily at 3%, than $1,000 over 8 years at 3%, compounded semi-annually, to the nearest cent?
Rhonda deposits $5,600 in a savings account that pays 1½% interest, compounded semi-annually. Round to the nearest cent.a. How much interest does the account earn in the first 6 months?b. What is the ending balance after 6 months?c. How much interest does the account earn in the second 6 months?d.
Caroline is opening a CD to save for college. She is considering a 3-year CD or a 3 1/2-year CD since she starts college around that time. She needs to be able to have the money to make tuition payments on time, and she does not want to have to withdraw money early from the CD and face a penalty.
When Abram was born, his parents put $2,000 into an account that yielded 1.2% interest, compounded semi-annually. When he turns age 16, his parents will give him the money to buy a car. How much will Abram receive on his 16th birthday?
Suni needs to repay her school loan in 4 years. How much must she semiannually deposit into an account that pays 0.9% interest, compounded semiannually, to have $100,000 to repay the loan?
Joby had $421.56 in her checking account when she deposited g $20 bills and k quarters. Write an expression that represents the amount of money in her account after the deposit.
Jess and Oscar have $200,000 to invest in a savings account that pays 2.875% interest compounded quarterly. How many years will it take for the account to earn $30,000 in interest? Round your answer to the nearest tenth of a year.
Mason discovered that when he recorded a deposit of $75 two weeks ago, he mistakenly subtracted it from the running total in his check register. He decided that he would write a new entry after his most recent entry and add $75. Will this correct his mistake? Explain.
Rebecca opened a savings account on March 20 with a $5,200 deposit. The account pays 3.99% interest, compounded daily. On March 21 she made a $700 deposit, and on March 22 she made a $500 withdrawal. Use this information to find the missing amounts. Round to the nearest cent. Date Opening
Find the simple interest on a $2,350 principal deposited for 6 years at a rate of 2.77%.
Leni opened a savings account that pays 0.8% interest compounded quarterly. Her initial deposit was $50. How long would she have to leave the money in the account for it to double?
Laura deposits $2,000 in an account that has an annual interest rate of 1.96%, compounded monthly. How much interest will she earn at the end of 1 month? Round to the nearest cent.
If $3,000 is invested at an interest rate of 1.8%, compounded hourly for 2 years, what is the ending balance, to the nearest cent?
Samuel wants to deposit $4,000 and keep that money in the bank without deposits or withdrawals for 3 years. He compares two different options. Option 1 will pay 1.8% interest, compounded quarterly. Option 2 will pay 1.5% interest, compounded continuously.a. How much interest does Option 1 pay?b.
Jacob opens a savings account in a non–leap year on August 10 with a $4,550 deposit. The account pays 1.1% interest, compounded daily. On August 11 he deposits $300, and on August 12 he withdraws $900. Find the missing amounts in the table. Round to the nearest cent. Date Opening
Sydney invests $100 every month into an account that pays 0.8% annual interest, compounded monthly. Benny invests $80 every month into an account that pays 2.2% annual interest rate, compounded monthly.a. Determine the amount in Sydney’s account after 10 years.b. Determine the amount in Benny’s
Rich needs $50,000 for a down payment on a home in 5 years. How much must he deposit into an account that pays 1.16% interest, compounded quarterly, in order to meet his goal?
Neka cashed a check for $245. The teller gave him two $50 bills, six $20 bills and f $5 bills. Determine the value of f.
Matt deposited $400 into an account that compounds interest daily at a rate of 1.095%. At the end of a certain period of time, he had a balance in the account of $417.91.a. Write an expression for the account term t but do not evaluate it.b. Using the expression you determined in part a and the
Ryan deposits $775 in an account that pays 1.24% simple interest for 4 years.Brian deposits $775 in an account that pays 1.24% simple interest for 1 year.a. What is Ryan’s interest after the 4 years?b. What is Ryan’s balance after 4 years?c. How much interest did Ryan’s account earn the first
Amita wants to make monthly deposits of $200 into a savings account that offers 1.5% interest compounded monthly. Use the future balance of a periodic investment formula from Example 3 to determine how long it will take for the account balance to reach $5000. Round to the nearest tenth of a year.
Fill in the missing balances in Raymond Marshall’s check register. Use the spreadsheet from www.cengage.com/financial_alg2e to determine if Raymond’s checking account reconciles with his statement. Raymond Marshall 34 2630 Street Oaks, NY
Mike and Julie receive $20,000 in gifts from friends and relatives for their wedding. They deposit the money into an account that pays 2.75% interest, compounded daily.a. Will their money double within 10 years?b. Will their money double within 15 years?
Nick deposited $3,000 in a 3-year CD account that pays 4.08% interest, compounded weekly. What is the ending balance? Round to the nearest cent.
On December 18 of a leap year, Stacy opened a savings account by depositing $6,000. The account pays 1.45% interest, compounded daily. On December 19 she deposited $500, and on December 20 she withdrew $2,500. Find the missing amounts in the table. Round to the nearest cent. What is her opening
Write an algebraic expression for the interest earned on a $15,000 deposit for t months at 1.75% interest, compounded continuously.
Marcy wants to have $75,000 saved sometime in the future. How much must she deposit into an account that pays 1.3% interest, compounded monthly? Use a graphing calculator to graph the present value function.
Olivia cashed a check for $113. The teller gave her four $20 bills, x $10 bills, and three $1 bills. Find the value of x.
Laura deposits $10,000 into an account that compounds interest continuously at a rate of 2.2%. To the nearest tenth of a year, how long will it take her money to grow to $10,800?
If Geoff makes quarterly deposits of $1,000 into an account that pays 1.4% interest quarterly, how long will it take for his principal to grow to $10,000? Use the future balance of a periodic investment formula from Example 3 to answer the question. Round to the nearest tenth of a year.
Find the term t of each continuously compounded account below rounded to the nearest tenth of a year. In the chart, B is the ending balance, P is the principal, and r is the interest rate expressed as a percent.
Lindsay invests $80 in an account that pays 1% annual interest, compounded monthly. Michele invests $60 in an account that pays 2% annual interest, compounded weekly.a. Whose balance is greater after 1 year?b. Whose balance is greater after 12 years?
How much more would $10,000 earn in 3 years compounded daily at 1.33%, than compounded semi-annually at 4.33%? Round to the nearest cent.
Albert Einstein said that compound interest was “the most powerful thing I have ever witnessed.” Work through the following exercises to discover a pattern Einstein discovered, which is now known as the Rule of 72. a. Suppose that you invest $2,000 at a 1% annual interest rate. Use your
Hector had y dollars in his savings account. He made a deposit of $20 bills and 1-dollar coins. He had four times as many $1 coins as he had $20 bills and the total of his $20 bills was $60. Write an expression for the balance in Hector’s account after the deposit.
When comparing his check register to his bank statement, Donté found that he had failed to record deposits of $55.65, $103.50, and $25.00. What is the total of these amounts and how will he use this information to reconcile his account?
How much simple interest does $2,560 earn in 17 months at a rate of 11/8 % ? Round to the nearest cent.
On May 29, Rocky had an opening balance of x dollars in an account that pays 1.3% interest, compounded daily. He deposits y dollars. Express his ending balance on May 30 algebraically.
Investigate the difference between compounding annually and simple interest for parts a–j. Round to the nearest cent.a. Find the simple interest for a 1-year CD for $5,000 at a 2.5% interest rate.b. Find the interest for a 1-year CD for $5,000 at an interest rate of 2.5%, compounded annually.c.
Review Example 3. An alternative method for solving Example 3 would have been to use the present value formula from Section 2-8 as shown here:In parts a–h below, write the equations that result when you follow the steps of this formula and show that it yields the same result as the solution to
On September 1, Chris Eugene made the following band equipment purchases at Leslie’s Music Store. Calculate her total bill. Complete a check for the correct amount. Print a copy of the check from www.cengage.com/financial_alg2e. DESCRIPTION Speaker Cabinets Speaker Cabinets Horns Audio
Austin deposits $2,250 into a 1-year CD at an interest rate of 2.3%, compounded daily.a. What is the ending balance after the year? Round to the nearest cent.b. How much interest did the account earn during the year?c. What is the annual percentage yield? Round to the nearest hundredth of a percent.
The time it takes for money to triple in an account where r is the interest rate expressed as a decimal compounded annually is given by the formulaUse the compound interest formula to derive this result. t = log3 log(1+r)
In parts a–k below, write the equations that result when you follow the steps to use the systematic withdrawal formulato determine how long it will take for a savings account to reach $0. The account was set up with an initial deposit of $3000. Interest is compounded semi-annually at 1.3% with a
How long does it take $450 to double at a simple interest rate of 14%?
Linda has d dollars in an account that pays 1.4% interest, compounded weekly. She withdraws w dollars. Express her first week’s interest algebraically.
Create a check register for the transactions listed. There is a $2.25 fee for each ATM use. Print a copy of the check register from www.cengage.com/financial_alg2e.a. Your balance on 10/29 is $237.47b. You write check 115 on 10/29 for $18.00 to Fox High School.c. You deposit a paycheck for $162.75
Kadeem deposited $50,000 into an account that compounds interest semiannually at a rate of 1.8%. At the end of each 6-month period, the bank withdraws $5,000 from the account. How long will it take until the account has a balance of $0? Round your answer to the nearest tenth of a year.
Island Bank is advertising a special 1.55% APR for long-term CDs. Manny takes out a 1-year CD for $40,000. The interest is compounded daily. Find the annual percentage yield for Manny’s account to the nearest hundredth of a percent.
Examine each of the following situations, labelled I, II, and III. Identify which of the three cases below applies. Do not solve the problems.I. future value of a single deposit investmentII. future value of a periodic deposit investmentIII. present value of a periodic deposit investmenta. You want
Ridgewood Savings Bank charges a $27 per check overdraft protection fee. On July 8, Nancy had $1,400 in her account. Over the next 4 days, the following checks arrived for payment at her bank: July 9, $1,380.15; July 10, $670 and $95.67; July 11, $130; and July 12, $87.60. How much will she pay in
What interest rate is needed for $9,500 to earn $900 in 19 months? Round to the nearest hundredth of a percent.
One day before the end of the month, George had an opening balance of m dollars in an account that pays 1.25% interest compounded monthly. On the last day of the month, he made a deposit equal to twice his opening balance. Express his ending balance on the last day of the month algebraically.
Gracie deposited $20,000 into an account that compounds interest weekly at a rate of 1.56%. Each week, her bank withdraws $200 from the account and puts that amount into her mortgage account. How long will it take until the account has a balance of $0? Round to the nearest tenth of a year.
Businesses deposit large sums of money into bank accounts. Imagine an account with $10 million in it.a. How much would the account earn in 1 year of simple interest at a rate of 2.12%? Round to the nearest cent.b. How much would the account earn in 1 year at 2.12% if the interest was compounded
Santos deposited $1,800 in an account that yields 2.1% interest, compounded semi-annually. How much is in the account after 54 months? Round to the nearest cent.
123 Savings and Loan charges a monthly fee of $8 on checking accounts and an overdraft protection fee of $33. Neela’s check register showed she had a balance of $456 when she wrote a check for $312. Three days later she realized her check register had an error and she actually only had $256. So
Assume $20,000 is deposited into a savings account. Bedford Bank offers an annual rate of 1% simple interest for 5 years. Slick Bank offers a rate of 5.1% simple interest for 1 year. Which earns more interest?
An elite private college receives large donations from successful alumni. The account that holds these donations now has $955 million.a. How much would the account earn in 1 year of simple interest at a rate of 2.33%? Round to the nearest cent.b. How much would the account earn in 1 year at 2.33%
Stephanie signed up for a direct deposit transfer into her savings account from her checking account. Every month $150 is withdrawn from her checking account. The interest in this account is at 1.6%, compounded monthly. How much will be in the account at the end of 6.5 years? Round to the nearest
Create a check register for the transactions listed. Download a blank check register from www.cengage.com/financial_alg2e.a. Your balance on 12/15 is $2,546.50.b. On 12/16, you write check 2345 for $54 to Kings Park High School Student Activities.c. On 12/17, you deposit your paycheck in the amount
Assume $x is deposited into a savings account. Blank Bank offers an annual rate of r% for y years. Thank Bank offers a rate of ry% for 1 year. Which earns more interest?
Download a copy of the check register shown below from www.cengage.com/financial_alg2e. Complete items a through z. PLEASE BE SURE TO DEDUCT CHANGES THAT AFFECT YOUR ACCOUNT ITEM NO. FOR TRANSACTION CODE 621 622 10/7 a. 10/8 624 10/10 DATE DESCRIPTION OF TRANSACTION 10/3 627 625 10/16 626
Jazmine needs $30,000 to pay off a loan at the end of 5 years. How much must she deposit monthly into a savings account that yields 1.15% interest, compounded monthly?
Maaz has a bank account with less than $400 in it. His bank pays no interest on that account and charges $2 per month for each month the account is below $500. How much will be in Maaz’s account if he makes no deposits or withdrawals after 2 years?
Dennis won $96,000 in a lottery. He decided to deposit the money into an account that pays 1.8% interest, compounded monthly. When the balance reaches $120,000, he plans to buy a beach cottage. How long will it take before he can make that withdrawal?
Ellen wants to make quarterly deposits of $1000 into a savings account that offers 1.4% interest compounded quarterly. How long will it take for the balance to grow to $15,000?
Find the missing terms indicated by variables in the arithmetic sequence shown.a, 30, b, 42, c, d, e
Dani deposited $20,000 into an account that compounds interest monthly at a rate of 1.26%. His plan is to use the account to make direct withdrawals each month of $800 to pay his rent. How many months of rent will he be able to pay until the account gets to $0?
Ron estimates that it will cost $400,000 to send his daughter to a private college in 18 years. He currently has $90,000 to deposit in an account. What simple interest rate must his account have to reach a balance of $400,000 in 18 years? Round to the nearest percent.
A couple is opening a savings account for a newborn baby. They start with $3,450 received in baby gifts. If no deposits or withdrawals are made, what is the balance of the account if it earns simple interest at 5% for 18 years?
Splash City Water Park has 14 different rides. Kerry and Kyra are planning a trip to the park. Their tickets are discounted if they agree to only go on eight different rides together. How many different combinations of rides can they choose?
A local comic book convention had an admission price of $17. During the week-long show, 19,344 people paid to enter.a. What is the range of the distribution of admission fees?b. What is the standard deviation of the distribution of admission fees?c. If the range of a distribution is 0, must its
The mean of a distribution of selected theme park admission prices is $59 with a standard deviation of $3.99. The mean cost of a distribution of a specific home stereo system sold at many different stores is $1,499 with a standard deviation of $4.a. Which distribution has the lower standard
The My Tunes song app sells music downloads. Over the past few years, the service has lowered its prices. The table shows the price per song and the number of songs downloaded per day at that price.a. Examine the data without drawing a scatter plot. Describe any trends you see.b. Draw a scatter
Interpret the quote in terms of what you have learned about essential and discretionary entertainment expenses.Nobody goes there anymore—it’s too crowded.
Jack wants to buy a pair of name-brand headphones on a popular auction website. He enters the brand, make, and model number and searches the site for what is available. He notices that some headphones are being offered as “buy now” with a fixed price and others are up for bid in auctions. Below
Interpret the quote in terms of what you have learned about essential and discretionary vacation expenses.For my part, I travel not to go anywhere, but to go. I travel for travel’s sake. The great affair is to move.
Interpret the quote in terms of what you have learned about essential and discretionary expenses.If you want to understand today, you have to search yesterday.
The variance of a distribution is 195. What is the standard deviation, rounded to the nearest thousandth?
Winnie needs to travel to Los Angeles. She has decided to go by bus. She researched three different bus companies and compiled the following frequency table for all of the ticket prices available leaving on January 29.a. Extend the graph by adding a cumulative frequency column. Calculate the six
A recent survey by the American Automobile Association showed that a family of two adults and two children on vacation in the United States will pay an average of $247 per day for food and lodging with a standard deviation of $60 per day. Assuming the data are normally distributed, find, to the
The following table lists the amount of discretionary spending by college students from 2008 to 2013 in billions of dollars.a. Write the formula for the mean yearly college student discretionary spending amount over the 6-year period using sigma notation and determine that mean. Round your answer
You get paid on the first day of each month. You cash your check and pay all of your essential expenses. You keep the balance in your “discretionary spending” envelope. A scatter plot shows the number of days that have passed since you were paid and the amount left in your discretionary
The Vetrone family members are all Cincinnati Reds baseball fans. They went to five games last season. The cost of each game, including parking, tickets, and food, is listed below.Round your answers to the nearest cent.a. What is the mean cost per game attended?b. What is the range?c. What is the
An electric bill is an essential expense for young people who get their first apartment. The following is a list of Jordan’s monthly electric bills for the past 10 months.Round your answers to the nearest cent.a. What is the mean monthly electric bill?b. What is the range?c. What is the
Examine each scatter plot. Identify each as showing a positive correlation, a negative correlation, or no correlation.
The senior class is planning a graduation trip. The trip committee surveyed the 250 seniors asking the amount they were willing to spend on the entire trip. The survey results are shown in this table.a. Extend the table to include the columns “Relative Frequency,” “Cumulative Frequency,”
If a family from the data set in question 2 had a z-score of 1.5, what was their daily expense for food and lodging?
Use the table in Example 2 to answer these questions.a. Add a relative frequency column. Calculate the relative frequencies. Round each to the nearest thousandth.b. Which price range(s) has a relative frequency greater than 0.18 and less than 0.27?c. Interpret the relative frequency for the
The Vetrone family members are all Cincinnati Reds baseball fans. They went to five games last season. The cost of each game, including parking, tickets, and food, is listed below.Round your answers to the nearest cent.a. What is the mean cost per game attended?b. What is the range?c. What is the
Since vacation travel is a discretionary expense, consumers want to make the most out of the money they have budgeted. They often check travel websites for hotel ratings before making any reservations. A popular travel website offers travelers the opportunity to rate a hotel experience based on
Use the data from question 2. If the data are normally distributed, find the ercentage of families who spent:a. Less than $167 per day.b. Less than $367 per day.c. More than $247 per day.d. More than $350 per day.e. Less than $67 per day.f. Between $200 and $300 per day.g. Between $360 and $400 per
Taking a cruise is a costly discretionary expense. In a recent year, the top five cruise lines in the world had this many passengers:Round your answers to the nearest integer.a. The computations will be easier to work if you view this problem in terms of thousands of passengers. Represent each
Many people travel to the south rim of the Grand Canyon on vacation each year. The National Parks Service keeps records of the number of vehicles entering the park.According to their website, the following table lists the total vehicles that entered the park each month from the beginning of April
Taking a cruise is a costly discretionary expense. In a recent year, the top five cruise lines in the world had this many passengers:Round your answers to the nearest integer.a. The computations will be easier to work if you view this problem in terms of thousands of passengers. Represent each
At the end of 2015, the U.S. Bureau of Economic Analysis posted the following data on the U.S. disposable personal income by month for the first 11 months of that year as indicated in this table:a. Without making a scatter plot, what trend do you see in the data?b. Draw a scatter plot. Describe the
The following table shows the number of times Key Club students at Peconic High School went to Echo Beach last summer.a. How many students are in the Key Club?b. Find the mean, median, mode, range, variance, and standard deviation for the distribution. Round to the nearest tenth.c. Millions of
Maria and Don Pa pace are flying to Florida to explore the possibility of moving there. They will be traveling with their two teenage sons. The table below lists information they have researched on the round-trip airfares that are available for purchase on the dates they have chosen to travel.Use
Using the data from question 2, you can compute the mean food and lodging cost of a 10-day vacation by multiplying the per-day mean by 10. The standard deviation for the 10-day vacation can be found by multiplying by 10 also.a. What is the mean for food and lodging for a 10-day vacation?b. What is

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Financial Algebra Advanced Algebra With Financial Applications 2nd Edition Robert Gerver, Richard J. Sgroi - Solutions

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