1) A man has a simple discount note for $6,500, at an ordinary bank discount rate of 8.53 % for 60 days. What is the effective interest rate? Round to the nearest tenth of a percent.

The effective interest rate is................... (Round to the nearest tenth of a percent as needed.)

2) Find the future value and compound interest on $6,000 at 88% compounded semiannually for two years. Use the Future Value or Compound Amount of $1.00 Table or the future value and compound interest formula.

Future Value or Compound Amount of $1.00.

Future value = ................ (Round to the nearest cent as needed.)

3) Find the amount that should be set aside today to yield the desired future amount. Use the table.

Future amount needed	Interest rate	Compounding period	Investment time
$2 comma 0002,000	33%	semiannually	44 years

The amount that should be set aside today is............... (Round to the nearest cent as needed.)

Data Table Table Future Value or Compound Amount of $1.00 Rate per period Periods 1% 1.5% 2% 2.5% 3% 4% 5% 6% 8% 1 1.01000 1.01500 1.02000 1.02500 1.03000 1.04000 1.05000 1.06000 1.08000 2 1.02010 1.03023 1.04040 1.05063 1.06090 1.08160 1.10250 1.12360 1.16640 3 1.03030 1.04568 1.06121 1.07689 1.09273 1.12486 1.15763 1.19102 1.25971 4 1.04060 1.06136 1.08243 1.10381 1.12551 1.16986 1.21551 1.26248 1.36049 5 1.05101 1.07728 1.10408 1.13141 1.15927 1.21665 1.27628 1.33823 1.46933 Table shows future value (FV) of $1.00 compounded for N periods at Rrate per period. Table values can be generated using the formula FV = $1(1 + R)N Print Done Definition Present value of $1.00 (page 1) Rate per period Periods 1% 1.5% 2% 2.5% 3% 0.99010 0.98522 0.98039 0.97561 0.97087 0.98030 0.97066 0.96117 0.95181 0.94260 0.97059 0.95632 0.94232 0.92860 0.91514 0.96098 0.94218 0.92385 0.90595 0.88849 0.95147 0.92826 0.90573 0.88385 0.86261 6 0.94205 0.91454 0.88797 0.86230 0.83748 7 0.93272 0.90103 0.87056 0.84127 0.81309 8 0.92348 0.88771 0.85349 0.82075 0.78941 0.91434 0.87459 0.83676 0.80073 0.76642 0.90529 0.86167 0.82035 0.78120 0.74409 0.89632 0.84893 0.80426 0.76214 0.72242 12 0.88745 0.83639 0.78849 0.74356 0.70138 0.87866 0.82403 0.77303 0.72542 0.68095 14 0.86996 0.81185 0.75788 0.70773 0.66112 15 0.86135 0.79985 0.74301 0.69047 0.64186 13 | 15 0.86 135 0.79985 0.74301 0.69047 0.64186 | 16 0.85282 0.78803 0.72845 0.67362 0.62317 | 17 0.84438 0.77639 0.71416 0.65720 0.60502 | 18 0.83602 0.76491 0.7006 0.64117 0.58739 | 19 0.82774 0.75361 0.68643 0.62553 0.57029 200 81954 0.74247 0.67297 0.61027 0.55368