Assignment 7

1)Find the simple interest.Round to the nearest cent.

$210 at 10% for 13 months

(20 points)

2) Solve the problem.

A $8190 note is signed, for 160 days, at a discount rate of 13.5%. Assume 360 days in a year. Find the proceeds.

(25 points)

3) Find the compound amount for the deposit. Round to the nearest cent.

$1800 at 7% compounded quarterly for 4 years

(25 points)

4)Solve the problem.

A bank gives you two options to choose from for your investments:

Option A: 6% annual interest rate compounded yearly; and

Option B: 5.9% annual interest rate compounded quarterly.

Decide which is the better investment at the end of 2 years.

Show calculations before you select which is the better investment

( 30 points)

Assignment 8

1) Find the amount that should be invested now, to accumulate $6000 at 4% compounded semiannually for 12 years.

(20 points)

2) Find the future value of the ordinary annuity.Interest is compounded annually, unless otherwise indicated.

R = $7500, i = 6% interest compounded semiannually for 3 years

(20 points)

3) Find the future value of the annuity due.

Payments of $2500 made at the beginning of each semiannual period for 15 years at 4% compounded semiannually

(20 points)

4) Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period.

$8900; money earns 5% compounded annually; 13 annual payments

(20 points)

5) Find the payment necessary to amortize the loan.

$120,000; 8% compounded annually; 10annual payments

Solve the problem by writing and solving a suitable system of equations.

1) If 50 pounds of tomatoes and 30 pounds of bananas cost $45 and 10 pounds of tomatoes and20 pounds of bananas cost $16, what is the price per pound of tomatoes and bananas?

Solve the problem by writing and solving a suitable system of equations.

3) Best Rentals charges a daily fee plus a mileage fee for renting its cars. Barney was charged $132 for 3 days and 300 miles, while Mary was charged $235 for 5 days and 600 miles. Whatdoes Best Rental charge per day and per mile?