1. Your roommate asks to borrow $500 and agrees to pay it in 45 days with interest...

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Question:

1. Your roommate asks to borrow $500 and agrees to pay it in 45 days with interest rate of 4%. How much interest will you earn?

2. The local school district you live in selling bonds for $2000 that pays 5% interest annually that matures in 10 years. How much interest will you earn?

3. Suppose you obtain a $5000 Treasury Note with a 3% annual rate, paid quarterly, with a maturity in 2 years. How much interest will you earn?

4. A loan company charges $50 interest for a one month loan of $1000. Find the annual interest rate being charged.

5. Matthew borrows $200, agreeing to pay it back with a 6% annual interest after 20 months. How much interest will she pay?

6. Suppose you deposit $4000 in a CD paying 5% interest, compounded monthly. How much will you have in the account after 15 years? Round to the nearest penny.

7. You deposit $400 in an account earning 3% interest compounded annually. How much will you have in the account in 30 years? Round to the nearest penny.

8. If you invest $3000 at 5% compounded quarterly, how long will it take the account to double in time? Round to the nearest year.

9. If you invest $1000 at 4.5% compounded monthly, how long will it take the account to get to $5000? Round to the nearest year.

10. You just had a child. You would like to have $50,000 for her college in 18 years. If the account earns 5% compounded monthly. How much will you need to deposit now to reach your goal? Round to the nearest dollar.