1- Find the capital necessary to obtain $1200 in 6 years at 12% compounded monthly.

Principal = $ 

2- In 3 years Harry and Sally would like to have $20000 for a down payment on a house. How much should they deposit each month into an account paying 5% compounded monthly?

Answer = $ 

3- Find the amount after 7 years if $500 is invested at 10% compounded:

a) Annually
Amount = $ 
b) Semiannually
Amount= $ 
c) Quarterly
Amount= $ 
d) Monthly
Amount= $ 

4- Stereo Inc. sells a stereo system for $500 down and monthly payments of $30 for the next 3 years. If the interest rate is 2.75% per month, find:

a) The cost of the stereo.
Answer = $ 
Hint: Make sure you are using the MONTHLY interest rate, meaning 2.75 % is APR/12.

b) The total amount of interest paid.
Answer = $ 

5-What annual rate of interest compounded annually is required to double an investment in 9 years?

Rate =  %

6- Find the amount of the annuity if the deposit is $1000 quarterly for 3 years at 3% compounded quarterly.

Amount = $ 

7- Mark deposits $1100 each month in a retirement plan paying 3% compounded monthly. How much will he have in the account after 10 years?

Answer = $ 

8- Find the yearly payment needed to pay off a loan of $29000 amortized at 9% compounded yearly for 16 years.

yearly payment = $

9-Nicholas invested $1800 per year in an IRA each year for 10 years earning 11% compounded yearly.

At the end of 10 years he ceased the IRA payments, but continued to invest his accumulated amount at 12% compounded monthly for the next 3 years.
a) What was the value of his IRA at the end of 10 years?
Answer = $

b) What was the value of the investment at the end of the next 3 years?
Answer = $