Essay Assignment (40 points) Your Assignment is to write an essay discussing the financing of a new car for your business. The price of the used car is $22,500. Sales tax on this car is 9% of the price of the vehicle. You intend to finance the entire cost of the car and sales tax, less a down payment of $2,000. You intend to finance the car for 48 months and your car payment will be $518.73 per month. Your essay should in include the following information 1. Calculate and discuss the amount financed, the installment price of the new car, and the finance charges you will pay over the life of the loan. 2. Compare and contrast the advantage of paying cash and financing the vehicle over a shorter period of time, as well as, the impact of finding lower interest rates. 3. Research and discuss the advantages of having good credit versus poor credit when qualifying for a loan. Discuss the implications of your credit score on the interest rates you may qualify for. Your essay should be complete and cover each point as outlined above. Be sure to include at least one text citation. Table to question 2 A loan of $1000 at 30% is compounded monthly for one year Find the future value and compound interest. Use the $1.00 future value table or the future value and compound interest formula Future value of the loan is? Round to nearest cent when needed. Rate per period Periods 0.50% 1.00% 1 1.00500 1.0100 0 2 1.01003 1.0201 0 3 1.01508 1.0303 0 4 1.02015 1.0406 0 5 1.02525 1.0510 1 6 1.03038 1.0615 2 7 1.03553 1.0721 4 8 1.04071 1.0828 6 9 1.04591 1.0936 9 10 1.05114 1.1046 2 11 1.05640 1.1156 7 12 1.06168 1.1268 3 13 1.06699 1.1380 9 14 1.07232 1.1494 7 15 1.07768 1.1609 7 16 1.08307 1.1725 8 17 1.08849 1.1843 0 1.50% 1.0150 0 1.0302 3 1.0456 8 1.0613 6 1.0772 8 1.0934 4 1.1098 4 1.1264 9 1.1433 9 1.1605 4 1.1779 5 1.1956 2 1.2135 5 1.2317 6 1.2502 3 1.2689 9 1.2880 2 2.00% 1.0200 0 1.0404 0 1.0612 1 1.0824 3 1.1040 8 1.1261 6 1.1486 9 1.1716 6 1.1950 9 1.2189 9 1.2433 7 1.2682 4 1.2936 1 1.3194 8 1.3458 7 1.3727 9 1.4002 4 2.50% 1.0250 0 1.0506 3 1.0768 9 1.1038 1 1.1314 1 1.1596 9 1.1886 9 1.2184 0 1.2488 6 1.2800 8 1.3120 9 1.3448 9 1.3785 1 1.4129 7 1.4483 0 1.4845 1 1.5216 2 3.00% 1.0300 0 1.0609 0 1.0927 3 1.1255 1 1.1592 7 1.1940 5 1.2298 7 1.2667 7 1.3047 7 1.3439 2 1.3842 3 1.4257 6 1.4685 3 1.5125 9 1.5579 7 1.6047 1 1.6528 5 3.50% 1.0350 0 1.0712 3 1.1087 2 1.1475 2 1.1876 9 1.2292 6 1.2722 8 1.3168 1 1.3629 0 1.4106 0 1.4599 7 1.5110 7 1.5639 6 1.6186 9 1.6753 5 1.7339 9 1.7946 8 4.00% 4.50% 1.04000 1.0450 0 1.08160 1.0920 3 1.12486 1.1411 7 1.16986 1.1925 2 1.21665 1.2461 8 1.26532 1.3022 6 1.31593 1.3608 6 1.36857 1.4221 0 1.42331 1.4861 0 1.48024 1.5529 7 1.53945 1.6228 5 1.60103 1.6958 8 1.66507 1.7722 0 1.73168 1.8519 4 1.80094 1.9352 8 1.87298 2.0223 7 1.94790 2.1133 8 5.00% 1.0500 0 1.1025 0 1.1576 3 1.2155 1 1.2762 8 1.3401 0 1.4071 0 1.4774 6 1.5513 3 1.6288 9 1.7103 4 1.7958 6 1.8856 5 1.9799 3 2.0789 3 2.1828 7 2.2920 2 5.50% 1.05500 1.11303 1.17424 1.23882 1.30696 1.37884 1.45468 1.53469 1.61909 1.70814 1.80209 1.90121 2.00577 2.11609 2.23248 2.35526 2.48480 Table to question 2 18 1.09393 1.1961 1.3073 1.4282 1.5596 1.7024 1.8574 2.02582 2.2084 2.4066 5 4 5 6 3 9 8 2 19 1.09940 1.2081 1.3269 1.4568 1.5986 1.7535 1.9225 2.10685 2.3078 2.5269 1 5 1 5 1 0 6 5 20 1.10490 1.2201 1.3468 1.4859 1.6386 1.8061 1.9897 2.19112 2.4117 2.6533 9 6 5 2 1 9 1 0 21 1.11042 1.2323 1.3670 1.5156 1.6795 1.8602 2.0594 2.27877 2.5202 2.7859 9 6 7 8 9 3 4 6 22 1.11597 1.2447 1.3875 1.5459 1.7215 1.9161 2.1315 2.36992 2.6336 2.9252 2 6 8 7 0 1 5 6 23 1.12155 1.2571 1.4083 1.5769 1.7646 1.9735 2.2061 2.46472 2.7521 3.0715 6 8 0 1 9 1 7 2 24 1.12716 1.2697 1.4295 1.6084 1.8087 2.0327 2.2833 2.56330 2.8760 3.2251 3 0 4 3 9 3 1 0 25 1.13280 1.2824 1.4509 1.6406 1.8539 2.0937 2.3632 2.66584 3.0054 3.3863 3 5 1 4 8 4 3 5 26 1.13846 1.2952 1.4727 1.6734 1.9002 2.1565 2.4459 2.77247 3.1406 3.5556 6 1 2 9 9 6 8 7 27 1.14415 1.3082 1.4948 1.7068 1.9478 2.2212 2.5315 2.88337 3.2820 3.7334 1 0 9 0 9 7 1 6 28 1.14987 1.3212 1.5172 1.7410 1.9965 2.2879 2.6201 2.99870 3.4297 3.9201 9 2 2 0 3 7 0 3 29 1.15562 1.3345 1.5399 1.7758 2.0464 2.3565 2.7118 3.11865 3.5840 4.1161 0 8 4 1 7 8 4 4 30 1.16140 1.3478 1.5630 1.8113 2.0975 2.4272 2.8067 3.24340 3.7453 4.3219 5 8 6 7 6 9 2 4 Periods 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% Rate per period Table shows future value (FV) of $1.00 compounded for N periods at R rate per period. Table values can be generated using the formula FV equals $ 1 left parenthesis 1 plus Upper R right parenthesis Superscript Upper NFV=$1(1+R Rate per period Period 6.00% s 1 1.0600 0 2 1.1236 0 3 1.1910 2 4 1.2624 8 5 1.3382 3 6 1.4185 2 7 1.5036 6.50% 7.00% 7.50% 8.00% 1.0650 0 1.1342 3 1.2079 5 1.2864 7 1.3700 9 1.4591 4 1.5539 1.0700 0 1.1449 0 1.2250 4 1.3108 0 1.4025 5 1.5007 3 1.6057 1.0750 0 1.1556 3 1.2423 0 1.3354 7 1.4356 3 1.5433 0 1.6590 8.50% 9.00% 9.50% 2.62147 2.76565 2.91776 3.07823 3.24754 3.42615 3.61459 3.81339 4.02313 4.24440 4.47784 4.72412 4.98395 5.50% 10.00% 11.00% 12.00% 1.08000 1.08500 1.09000 1.09500 1.10000 1.11000 1.12000 1.16640 1.17723 1.18810 1.19903 1.21000 1.23210 1.25440 1.25971 1.27729 1.29503 1.31293 1.33100 1.36763 1.40493 1.36049 1.38586 1.41158 1.43766 1.46410 1.51807 1.57352 1.46933 1.50366 1.53862 1.57424 1.61051 1.68506 1.76234 1.58687 1.63147 1.67710 1.72379 1.77156 1.87041 1.97382 1.71382 1.77014 1.82804 1.88755 1.94872 2.07616 2.21068 Table to question 2 3 8 1.5938 5 9 1.6894 8 10 1.7908 5 11 1.8983 0 12 2.0122 0 13 2.1329 3 14 2.2609 0 15 2.3965 6 16 2.5403 5 17 2.6927 7 18 2.8543 4 19 3.0256 0 20 3.2071 4 21 3.3995 6 22 3.6035 4 23 3.8197 5 24 4.0489 3 25 4.2918 7 26 4.5493 8 27 4.8223 5 28 5.1116 9 29 5.4183 9 30 5.7434 9 Period 6.00% s 9 1.6550 0 1.7625 7 1.8771 4 1.9991 5 2.1291 0 2.2674 9 2.4148 7 2.5718 4 2.7390 1 2.9170 5 3.1066 5 3.3085 9 3.5236 5 3.7526 8 3.9966 1 4.2563 9 4.5330 5 4.8277 0 5.1415 0 5.4757 0 5.8316 2 6.2106 7 6.6143 7 6.50% 8 1.7181 9 1.8384 6 1.9671 5 2.1048 5 2.2521 9 2.4098 5 2.5785 3 2.7590 3 2.9521 6 3.1588 2 3.3799 3 3.6165 3 3.8696 8 4.1405 6 4.4304 0 4.7405 3 5.0723 7 5.4274 3 5.8073 5 6.2138 7 6.6488 4 7.1142 6 7.6122 6 7.00% 5 1.7834 8 1.9172 4 2.0610 3 2.2156 1 2.3817 8 2.5604 1 2.7524 4 2.9588 8 3.1807 9 3.4193 5 3.6758 0 3.9514 9 4.2478 5 4.5664 4 4.9089 2 5.2770 9 5.6728 7 6.0983 4 6.5557 2 7.0473 9 7.5759 5 8.1441 4 8.7549 6 7.50% 1.85093 1.92060 1.99253 2.06687 2.14359 2.30454 2.47596 1.99900 2.08386 2.17189 2.26322 2.35795 2.55804 2.77308 2.15892 2.26098 2.36736 2.47823 2.59374 2.83942 3.10585 2.33164 2.45317 2.58043 2.71366 2.85312 3.15176 3.47855 2.51817 2.66169 2.81266 2.97146 3.13843 3.49845 3.89598 2.71962 2.88793 3.06580 3.25375 3.45227 3.88328 4.36349 2.93719 3.13340 3.34173 3.56285 3.79750 4.31044 4.88711 3.17217 3.39974 3.64248 3.90132 4.17725 4.78459 5.47357 3.42594 3.68872 3.97031 4.27195 4.59497 5.31089 6.13039 3.70002 4.00226 4.32763 4.67778 5.05447 5.89509 6.86604 3.99602 4.34245 4.71712 5.12217 5.55992 6.54355 7.68997 4.31570 4.71156 5.14166 5.60878 6.11591 7.26334 8.61276 4.66096 5.11205 5.60441 6.14161 6.72750 8.06231 9.64629 5.03383 5.54657 6.10881 6.72507 7.40025 8.94917 10.8038 5 5.43654 6.01803 6.65860 7.36395 8.14027 9.93357 12.1003 1 5.87146 6.52956 7.25787 8.06352 8.95430 11.0262 13.5523 7 5 6.34118 7.08457 7.91108 8.82956 9.84973 12.2391 15.1786 6 3 6.84848 7.68676 8.62308 9.66836 10.8347 13.5854 17.0000 1 6 6 7.39635 8.34014 9.39916 10.5868 11.9181 15.0798 19.0400 6 8 6 7 7.98806 9.04905 10.2450 11.5926 13.1099 16.7386 21.3248 8 1 9 5 8 8.62711 9.81822 11.1671 12.6939 14.4209 18.5799 23.8838 4 1 9 0 7 9.31727 10.6527 12.1721 13.8998 15.8630 20.6236 26.7499 7 8 3 9 9 3 10.0626 11.5582 13.2676 15.2203 17.4494 22.8923 29.9599 6 5 8 1 0 0 2 8.00% 8.50% 9.00% 9.50% 10.00% 11.00% 12.00% Table to question 2 Rate per period Table shows future value (FV) of $1.00 compounded for N periods at R rate per period. Table values can be generated using the formula N FV equals $ 1 left parenthesis 1 plus Upper R right parenthesis Superscript Upper NFV=$1(1+R) . Question 3A bank made a farmer a loan of 1,000 at 15% for three years compounded annually. Find the future value and the compound interest paid on the loan. Compare the compound interest with simple interest for the same period. Future value is? (round to the nearest cent as needed) 4. Tom Bond borrowed $6,200 at 8.5 percent for three years compounded annually. What is the compound amount of the loan and how much interest will he pay on the loan? Compound amount = (ROUND TO THE NEAREST CENT AS NEEDED) 5. A bank loaned John Smith $1,000 for six years compounded annually at 7%. How much interest was John required to pay on the loan? Use the $1.00 future value table or the future value and compound interest formula. Rate per period Periods 0.50% 1 1.00500 2 1.01003 3 1.01508 4 1.02015 5 1.02525 6 1.03038 7 1.03553 8 1.04071 9 1.04591 10 1.05114 1.00% 1.01000 1.02010 1.03030 1.04060 1.05101 1.06152 1.07214 1.08286 1.09369 1.10462 1.50% 1.01500 1.03023 1.04568 1.06136 1.07728 1.09344 1.10984 1.12649 1.14339 1.16054 2.00% 1.02000 1.04040 1.06121 1.08243 1.10408 1.12616 1.14869 1.17166 1.19509 1.21899 2.50% 1.02500 1.05063 1.07689 1.10381 1.13141 1.15969 1.18869 1.21840 1.24886 1.28008 3.00% 1.03000 1.06090 1.09273 1.12551 1.15927 1.19405 1.22987 1.26677 1.30477 1.34392 3.50% 1.03500 1.07123 1.10872 1.14752 1.18769 1.22926 1.27228 1.31681 1.36290 1.41060 4.00% 1.04000 1.08160 1.12486 1.16986 1.21665 1.26532 1.31593 1.36857 1.42331 1.48024 4.50% 1.04500 1.09203 1.14117 1.19252 1.24618 1.30226 1.36086 1.42210 1.48610 1.55297 5.00% 1.05000 1.10250 1.15763 1.21551 1.27628 1.34010 1.40710 1.47746 1.55133 1.62889 5.50% 1.05500 1.11303 1.17424 1.23882 1.30696 1.37884 1.45468 1.53469 1.61909 1.70814 Table to question 2 11 1.05640 1.11567 1.17795 1.24337 1.31209 1.38423 1.45997 1.53945 1.62285 12 1.06168 1.12683 1.19562 1.26824 1.34489 1.42576 1.51107 1.60103 1.69588 13 1.06699 1.13809 1.21355 1.29361 1.37851 1.46853 1.56396 1.66507 1.77220 14 1.07232 1.14947 1.23176 1.31948 1.41297 1.51259 1.61869 1.73168 1.85194 15 1.07768 1.16097 1.25023 1.34587 1.44830 1.55797 1.67535 1.80094 1.93528 16 1.08307 1.17258 1.26899 1.37279 1.48451 1.60471 1.73399 1.87298 2.02237 17 1.08849 1.18430 1.28802 1.40024 1.52162 1.65285 1.79468 1.94790 2.11338 18 1.09393 1.19615 1.30734 1.42825 1.55966 1.70243 1.85749 2.02582 2.20848 19 1.09940 1.20811 1.32695 1.45681 1.59865 1.75351 1.92250 2.10685 2.30786 20 1.10490 1.22019 1.34686 1.48595 1.63862 1.80611 1.98979 2.19112 2.41171 21 1.11042 1.23239 1.36706 1.51567 1.67958 1.86029 2.05943 2.27877 2.52024 22 1.11597 1.24472 1.38756 1.54598 1.72157 1.91610 2.13151 2.36992 2.63365 23 1.12155 1.25716 1.40838 1.57690 1.76461 1.97359 2.20611 2.46472 2.75217 24 1.12716 1.26973 1.42950 1.60844 1.80873 2.03279 2.28333 2.56330 2.87601 25 1.13280 1.28243 1.45095 1.64061 1.85394 2.09378 2.36324 2.66584 3.00543 26 1.13846 1.29526 1.47271 1.67342 1.90029 2.15659 2.44596 2.77247 3.14068 27 1.14415 1.30821 1.49480 1.70689 1.94780 2.22129 2.53157 2.88337 3.28201 28 1.14987 1.32129 1.51722 1.74102 1.99650 2.28793 2.62017 2.99870 3.42970 29 1.15562 1.33450 1.53998 1.77584 2.04641 2.35657 2.71188 3.11865 3.58404 30 1.16140 1.34785 1.56308 1.81136 2.09757 2.42726 2.80679 3.24340 3.74532 Periods 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% Rate per period Table shows future value (FV) of $1.00 compounded for N periods at R rate per period. Table values can be generated using the formula 1.71034 1.79586 1.88565 1.97993 2.07893 2.18287 2.29202 2.40662 2.52695 2.65330 2.78596 2.92526 3.07152 3.22510 3.38635 3.55567 3.73346 3.92013 4.11614 4.32194 5.00% 1.80209 1.90121 2.00577 2.11609 2.23248 2.35526 2.48480 2.62147 2.76565 2.91776 3.07823 3.24754 3.42615 3.61459 3.81339 4.02313 4.24440 4.47784 4.72412 4.98395 5.50% N FV equals $ 1 left parenthesis 1 plus Upper R right parenthesis Superscript Upper NFV=$1(1+R) . Rate per period Period 6.00% s 1 1.0600 0 2 1.1236 0 6.50% 7.00% 7.50% 8.00% 1.0650 0 1.1342 3 1.0700 0 1.1449 0 8.50% 9.00% 9.50% 10.00% 11.00% 12.00% 1.0750 1.08000 1.08500 1.09000 1.09500 1.10000 1.11000 1.12000 0 1.1556 1.16640 1.17723 1.18810 1.19903 1.21000 1.23210 1.25440 3 Table to question 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1.1910 2 1.2624 8 1.3382 3 1.4185 2 1.5036 3 1.5938 5 1.6894 8 1.7908 5 1.8983 0 2.0122 0 2.1329 3 2.2609 0 2.3965 6 2.5403 5 2.6927 7 2.8543 4 3.0256 0 3.2071 4 3.3995 6 3.6035 4 3.8197 5 4.0489 3 4.2918 7 4.5493 8 4.8223 1.2079 5 1.2864 7 1.3700 9 1.4591 4 1.5539 9 1.6550 0 1.7625 7 1.8771 4 1.9991 5 2.1291 0 2.2674 9 2.4148 7 2.5718 4 2.7390 1 2.9170 5 3.1066 5 3.3085 9 3.5236 5 3.7526 8 3.9966 1 4.2563 9 4.5330 5 4.8277 0 5.1415 0 5.4757 1.2250 4 1.3108 0 1.4025 5 1.5007 3 1.6057 8 1.7181 9 1.8384 6 1.9671 5 2.1048 5 2.2521 9 2.4098 5 2.5785 3 2.7590 3 2.9521 6 3.1588 2 3.3799 3 3.6165 3 3.8696 8 4.1405 6 4.4304 0 4.7405 3 5.0723 7 5.4274 3 5.8073 5 6.2138 1.2423 0 1.3354 7 1.4356 3 1.5433 0 1.6590 5 1.7834 8 1.9172 4 2.0610 3 2.2156 1 2.3817 8 2.5604 1 2.7524 4 2.9588 8 3.1807 9 3.4193 5 3.6758 0 3.9514 9 4.2478 5 4.5664 4 4.9089 2 5.2770 9 5.6728 7 6.0983 4 6.5557 2 7.0473 1.25971 1.27729 1.29503 1.31293 1.33100 1.36763 1.40493 1.36049 1.38586 1.41158 1.43766 1.46410 1.51807 1.57352 1.46933 1.50366 1.53862 1.57424 1.61051 1.68506 1.76234 1.58687 1.63147 1.67710 1.72379 1.77156 1.87041 1.97382 1.71382 1.77014 1.82804 1.88755 1.94872 2.07616 2.21068 1.85093 1.92060 1.99253 2.06687 2.14359 2.30454 2.47596 1.99900 2.08386 2.17189 2.26322 2.35795 2.55804 2.77308 2.15892 2.26098 2.36736 2.47823 2.59374 2.83942 3.10585 2.33164 2.45317 2.58043 2.71366 2.85312 3.15176 3.47855 2.51817 2.66169 2.81266 2.97146 3.13843 3.49845 3.89598 2.71962 2.88793 3.06580 3.25375 3.45227 3.88328 4.36349 2.93719 3.13340 3.34173 3.56285 3.79750 4.31044 4.88711 3.17217 3.39974 3.64248 3.90132 4.17725 4.78459 5.47357 3.42594 3.68872 3.97031 4.27195 4.59497 5.31089 6.13039 3.70002 4.00226 4.32763 4.67778 5.05447 5.89509 6.86604 3.99602 4.34245 4.71712 5.12217 5.55992 6.54355 7.68997 4.31570 4.71156 5.14166 5.60878 6.11591 7.26334 8.61276 4.66096 5.11205 5.60441 6.14161 6.72750 8.06231 9.64629 5.03383 5.54657 6.10881 6.72507 7.40025 8.94917 10.8038 5 5.43654 6.01803 6.65860 7.36395 8.14027 9.93357 12.1003 1 5.87146 6.52956 7.25787 8.06352 8.95430 11.0262 13.5523 7 5 6.34118 7.08457 7.91108 8.82956 9.84973 12.2391 15.1786 6 3 6.84848 7.68676 8.62308 9.66836 10.8347 13.5854 17.0000 1 6 6 7.39635 8.34014 9.39916 10.5868 11.9181 15.0798 19.0400 6 8 6 7 7.98806 9.04905 10.2450 11.5926 13.1099 16.7386 21.3248 Table to question 2 5 0 7 9 8 1 9 28 5.1116 5.8316 6.6488 7.5759 8.62711 9.81822 11.1671 12.6939 14.4209 9 2 4 5 4 1 9 29 5.4183 6.2106 7.1142 8.1441 9.31727 10.6527 12.1721 13.8998 15.8630 9 7 6 4 7 8 3 9 30 5.7434 6.6143 7.6122 8.7549 10.0626 11.5582 13.2676 15.2203 17.4494 9 7 6 6 6 5 8 1 0 Period 6.00% 6.50% 7.00% 7.50% 8.00% 8.50% 9.00% 9.50% 10.00% s Rate per period Table shows future value (FV) of $1.00 compounded for N periods at R rate per period. Table values can be generated using the formula 5 18.5799 0 20.6236 9 22.8923 0 11.00% N FV equals $ 1 left parenthesis 1 plus Upper R right parenthesis Superscript Upper NFV=$1(1+R) . 6. 7. Find the compound interest on a $3,500 investment at 75% compounded daily for 25 days. LOADING... Click the icon to view the table of compound interest of $100 compounded daily. (Table below) Compound Interest on $100, Compounded Daily (365 Days) (Exact Time, Exact Interest Basis) Annual rate for selected rates Days0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 2.50% 1 0.001370 0.002055 0.002740 0.003425 0.004110 0.004795 0.005479 0.006164 0.006849 2 0.002740 0.004110 0.005480 0.006849 0.008219 0.009589 0.010959 0.012329 0.013699 3 0.004110 0.006165 0.008219 0.010274 0.012329 0.014384 0.016439 0.018494 0.020549 4 0.005480 0.008219 0.010959 0.013699 0.016439 0.019179 0.021920 0.024660 0.027400 5 0.006850 0.010274 0.013699 0.017124 0.020550 0.023975 0.027400 0.030826 0.034251 6 0.008219 0.012329 0.016439 0.020550 0.024660 0.028771 0.032881 0.036992 0.041103 7 0.009589 0.014384 0.019180 0.023975 0.028771 0.033566 0.038362 0.043159 0.047955 8 0.010959 0.016440 0.021920 0.027401 0.032881 0.038363 0.043844 0.049326 0.054808 9 0.012329 0.018495 0.024660 0.030826 0.036992 0.043159 0.049326 0.055493 0.061661 10 0.013699 0.020550 0.027401 0.034252 0.041103 0.047956 0.054808 0.061661 0.068514 11 0.015070 0.022605 0.030141 0.037678 0.045215 0.052752 0.060290 0.067829 0.075368 12 0.016440 0.024660 0.032882 0.041104 0.049326 0.057549 0.065773 0.073998 0.082223 13 0.017810 0.026716 0.035622 0.044530 0.053438 0.062347 0.071256 0.080167 0.089078 14 0.019180 0.028771 0.038363 0.047956 0.057550 0.067144 0.076740 0.086336 0.095933 15 0.020550 0.030826 0.041104 0.051382 0.061662 0.071942 0.082223 0.092506 0.102789 8 23.8838 7 26.7499 3 29.9599 2 12.00% Table to question 2 16 0.021920 0.032882 0.043845 0.054809 0.065774 0.076740 0.087707 0.098676 0.109645 17 0.023290 0.034937 0.046586 0.058235 0.069886 0.081538 0.093192 0.104846 0.116502 18 0.024660 0.036993 0.049327 0.061662 0.073998 0.086337 0.098676 0.111017 0.123359 19 0.026031 0.039048 0.052068 0.065089 0.078111 0.091135 0.104161 0.117188 0.130217 20 0.027401 0.041104 0.054809 0.068515 0.082224 0.095934 0.109646 0.123360 0.137075 21 0.028771 0.043160 0.057550 0.071942 0.086337 0.100733 0.115132 0.129532 0.143934 22 0.030141 0.045215 0.060291 0.075370 0.090450 0.105533 0.120617 0.135704 0.150793 23 0.031512 0.047271 0.063033 0.078797 0.094563 0.110332 0.126103 0.141877 0.157653 24 0.032882 0.049327 0.065774 0.082224 0.098677 0.115132 0.131590 0.148050 0.164513 25 0.034252 0.051383 0.068516 0.085652 0.102790 0.119932 0.137076 0.154224 0.171374 Table shows interest (I) on $100 compounded daily for N days at an annual rate of R. Table values can be generated using the formula 100 left parenthesis 1 plus StartFraction Upper R Over 365 EndFraction right parenthesis Superscript Upper N Baseline minus 100.1001+R365 N???100. 8. John Smith has found a short??term investment opportunity. He can invest $5,000 at .75% interest for 10 days. How much interest will he earn on this investment if the interest is compounded daily? LOADING... Click the icon to view the table of compound interest of $100 compounded daily. (table below) Compound Interest on $100, Compounded Daily (365 Days) (Exact Time, Exact Interest Basis) Annual rate for selected rates Days0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 2.50% 1 0.001370 0.002055 0.002740 0.003425 0.004110 0.004795 0.005479 0.006164 0.006849 2 0.002740 0.004110 0.005480 0.006849 0.008219 0.009589 0.010959 0.012329 0.013699 3 0.004110 0.006165 0.008219 0.010274 0.012329 0.014384 0.016439 0.018494 0.020549 4 0.005480 0.008219 0.010959 0.013699 0.016439 0.019179 0.021920 0.024660 0.027400 5 0.006850 0.010274 0.013699 0.017124 0.020550 0.023975 0.027400 0.030826 0.034251 6 0.008219 0.012329 0.016439 0.020550 0.024660 0.028771 0.032881 0.036992 0.041103 7 0.009589 0.014384 0.019180 0.023975 0.028771 0.033566 0.038362 0.043159 0.047955 8 0.010959 0.016440 0.021920 0.027401 0.032881 0.038363 0.043844 0.049326 0.054808 9 0.012329 0.018495 0.024660 0.030826 0.036992 0.043159 0.049326 0.055493 0.061661 10 0.013699 0.020550 0.027401 0.034252 0.041103 0.047956 0.054808 0.061661 0.068514 11 0.015070 0.022605 0.030141 0.037678 0.045215 0.052752 0.060290 0.067829 0.075368 12 0.016440 0.024660 0.032882 0.041104 0.049326 0.057549 0.065773 0.073998 0.082223 13 0.017810 0.026716 0.035622 0.044530 0.053438 0.062347 0.071256 0.080167 0.089078 14 0.019180 0.028771 0.038363 0.047956 0.057550 0.067144 0.076740 0.086336 0.095933 15 0.020550 0.030826 0.041104 0.051382 0.061662 0.071942 0.082223 0.092506 0.102789 16 0.021920 0.032882 0.043845 0.054809 0.065774 0.076740 0.087707 0.098676 0.109645 17 0.023290 0.034937 0.046586 0.058235 0.069886 0.081538 0.093192 0.104846 0.116502 18 0.024660 0.036993 0.049327 0.061662 0.073998 0.086337 0.098676 0.111017 0.123359 19 0.026031 0.039048 0.052068 0.065089 0.078111 0.091135 0.104161 0.117188 0.130217 Table to question 2 20 0.027401 0.041104 0.054809 0.068515 0.082224 0.095934 0.109646 0.123360 0.137075 21 0.028771 0.043160 0.057550 0.071942 0.086337 0.100733 0.115132 0.129532 0.143934 22 0.030141 0.045215 0.060291 0.075370 0.090450 0.105533 0.120617 0.135704 0.150793 23 0.031512 0.047271 0.063033 0.078797 0.094563 0.110332 0.126103 0.141877 0.157653 24 0.032882 0.049327 0.065774 0.082224 0.098677 0.115132 0.131590 0.148050 0.164513 25 0.034252 0.051383 0.068516 0.085652 0.102790 0.119932 0.137076 0.154224 0.171374 Table shows interest (I) on $100 compounded daily for N days at an annual rate of R. Table values can be generated using the formula 100 left parenthesis 1 plus StartFraction Upper R Over 365 EndFraction right parenthesis Superscript Upper N Baseline minus 100. 9. Find the amount that should be set aside today to yield the desired future amount. Future amount needed Interest rate Compounding period Investment time $4,000 24% semiannually 22 years LOADING... Click the icon to view the present value of $1.00 table. (table below) Rate per period Period 0.5% 1% 1.5% 2% 2.5% 3% 4% 5% 6% s 0.961540.952380.9434 1 0.995020.990100.985220.980390.975610.97087 0 2 0.990070.980300.970660.961170.951810.942600.924560.907030.8900 3 0.985150.970590.956320.942320.928600.91514 0 4 0.980250.960980.942180.923850.905950.888490.889000.863840.8396 5 0.975370.951470.928260.905730.883850.86261 2 6 0.970520.942050.914540.887970.862300.837480.854800.822700.7920 9 7 0.965690.932720.901030.870560.841270.81309 8 0.960890.923480.887710.853490.820750.789410.821930.783530.7472 6 9 0.956100.914340.874590.836760.800730.76642 10 0.951350.905290.861670.820350.781200.744090.790310.746220.7049 6 11 0.946610.896320.848930.804260.762140.72242 12 0.941910.887450.836390.788490.743560.701380.759920.710680.6650 6 13 0.937220.878660.824030.773030.725420.68095 14 0.932560.869960.811850.757880.707730.661120.730690.676840.6274 1 15 0.927920.861350.799850.743010.690470.64186 0.702590.644610.5919 16 0.923300.852820.788030.728450.673620.62317 0 17 0.918710.844380.776390.714160.657200.60502 18 0.914140.836020.764910.700160.641170.587390.675560.613910.5583 9 19 0.909590.827740.753610.686430.625530.57029 20 0.905060.819540.742470.672970.610270.553680.649580.584680.5267 9 0.624600.556840.4969 7 0.600570.530320.4688 4 0.577480.505070.4423 8% 10% 12% 0.925930.909090.89286 0.857340.826450.79719 0.793830.751310.71178 0.735030.683010.63552 0.680580.620920.56743 0.630170.564470.50663 0.583490.513160.45235 0.540270.466510.40388 0.500250.424100.36061 0.463190.385540.32197 0.428880.350490.28748 0.397110.318630.25668 0.367700.289660.22917 0.340460.263330.20462 Table to question 2 0 0.555260.481020.4172 7 0.533910.458110.3936 5 0.513370.436300.3713 6 0.493630.415520.3503 4 0.474640.395730.3305 1 0.456390.376890.3118 0 0.315240.239390.18270 0.291890.217630.16312 0.270270.197840.14564 0.250250.179860.13004 0.231710.163510.11611 0.214550.148640.10367 Table to question 2 A loan of $1000 at 30% is compounded monthly for one year Find the future value and compound interest. Use the $1.00 future value table or the future value and compound interest formula Future value of the loan is? Round to nearest cent when needed. Rate per period Periods 0.50% 1.00% 1 1.00500 1.0100 0 2 1.01003 1.0201 0 3 1.01508 1.0303 0 4 1.02015 1.0406 0 5 1.02525 1.0510 1 6 1.03038 1.0615 2 7 1.03553 1.0721 4 8 1.04071 1.0828 6 9 1.04591 1.0936 9 10 1.05114 1.1046 2 11 1.05640 1.1156 7 12 1.06168 1.1268 3 13 1.06699 1.1380 9 14 1.07232 1.1494 7 15 1.07768 1.1609 7 16 1.08307 1.1725 8 17 1.08849 1.1843 0 1.50% 1.0150 0 1.0302 3 1.0456 8 1.0613 6 1.0772 8 1.0934 4 1.1098 4 1.1264 9 1.1433 9 1.1605 4 1.1779 5 1.1956 2 1.2135 5 1.2317 6 1.2502 3 1.2689 9 1.2880 2 2.00% 1.0200 0 1.0404 0 1.0612 1 1.0824 3 1.1040 8 1.1261 6 1.1486 9 1.1716 6 1.1950 9 1.2189 9 1.2433 7 1.2682 4 1.2936 1 1.3194 8 1.3458 7 1.3727 9 1.4002 4 2.50% 1.0250 0 1.0506 3 1.0768 9 1.1038 1 1.1314 1 1.1596 9 1.1886 9 1.2184 0 1.2488 6 1.2800 8 1.3120 9 1.3448 9 1.3785 1 1.4129 7 1.4483 0 1.4845 1 1.5216 2 3.00% 1.0300 0 1.0609 0 1.0927 3 1.1255 1 1.1592 7 1.1940 5 1.2298 7 1.2667 7 1.3047 7 1.3439 2 1.3842 3 1.4257 6 1.4685 3 1.5125 9 1.5579 7 1.6047 1 1.6528 5 3.50% 1.0350 0 1.0712 3 1.1087 2 1.1475 2 1.1876 9 1.2292 6 1.2722 8 1.3168 1 1.3629 0 1.4106 0 1.4599 7 1.5110 7 1.5639 6 1.6186 9 1.6753 5 1.7339 9 1.7946 8 4.00% 4.50% 1.04000 1.0450 0 1.08160 1.0920 3 1.12486 1.1411 7 1.16986 1.1925 2 1.21665 1.2461 8 1.26532 1.3022 6 1.31593 1.3608 6 1.36857 1.4221 0 1.42331 1.4861 0 1.48024 1.5529 7 1.53945 1.6228 5 1.60103 1.6958 8 1.66507 1.7722 0 1.73168 1.8519 4 1.80094 1.9352 8 1.87298 2.0223 7 1.94790 2.1133 8 5.00% 1.0500 0 1.1025 0 1.1576 3 1.2155 1 1.2762 8 1.3401 0 1.4071 0 1.4774 6 1.5513 3 1.6288 9 1.7103 4 1.7958 6 1.8856 5 1.9799 3 2.0789 3 2.1828 7 2.2920 2 5.50% 1.05500 1.11303 1.17424 1.23882 1.30696 1.37884 1.45468 1.53469 1.61909 1.70814 1.80209 1.90121 2.00577 2.11609 2.23248 2.35526 2.48480 Table to question 2 18 1.09393 1.1961 1.3073 1.4282 1.5596 1.7024 1.8574 2.02582 2.2084 2.4066 5 4 5 6 3 9 8 2 19 1.09940 1.2081 1.3269 1.4568 1.5986 1.7535 1.9225 2.10685 2.3078 2.5269 1 5 1 5 1 0 6 5 20 1.10490 1.2201 1.3468 1.4859 1.6386 1.8061 1.9897 2.19112 2.4117 2.6533 9 6 5 2 1 9 1 0 21 1.11042 1.2323 1.3670 1.5156 1.6795 1.8602 2.0594 2.27877 2.5202 2.7859 9 6 7 8 9 3 4 6 22 1.11597 1.2447 1.3875 1.5459 1.7215 1.9161 2.1315 2.36992 2.6336 2.9252 2 6 8 7 0 1 5 6 23 1.12155 1.2571 1.4083 1.5769 1.7646 1.9735 2.2061 2.46472 2.7521 3.0715 6 8 0 1 9 1 7 2 24 1.12716 1.2697 1.4295 1.6084 1.8087 2.0327 2.2833 2.56330 2.8760 3.2251 3 0 4 3 9 3 1 0 25 1.13280 1.2824 1.4509 1.6406 1.8539 2.0937 2.3632 2.66584 3.0054 3.3863 3 5 1 4 8 4 3 5 26 1.13846 1.2952 1.4727 1.6734 1.9002 2.1565 2.4459 2.77247 3.1406 3.5556 6 1 2 9 9 6 8 7 27 1.14415 1.3082 1.4948 1.7068 1.9478 2.2212 2.5315 2.88337 3.2820 3.7334 1 0 9 0 9 7 1 6 28 1.14987 1.3212 1.5172 1.7410 1.9965 2.2879 2.6201 2.99870 3.4297 3.9201 9 2 2 0 3 7 0 3 29 1.15562 1.3345 1.5399 1.7758 2.0464 2.3565 2.7118 3.11865 3.5840 4.1161 0 8 4 1 7 8 4 4 30 1.16140 1.3478 1.5630 1.8113 2.0975 2.4272 2.8067 3.24340 3.7453 4.3219 5 8 6 7 6 9 2 4 Periods 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% Rate per period Table shows future value (FV) of $1.00 compounded for N periods at R rate per period. Table values can be generated using the formula FV equals $ 1 left parenthesis 1 plus Upper R right parenthesis Superscript Upper NFV=$1(1+R Rate per period Period 6.00% s 1 1.0600 0 2 1.1236 0 3 1.1910 2 4 1.2624 8 5 1.3382 3 6 1.4185 2 7 1.5036 6.50% 7.00% 7.50% 8.00% 1.0650 0 1.1342 3 1.2079 5 1.2864 7 1.3700 9 1.4591 4 1.5539 1.0700 0 1.1449 0 1.2250 4 1.3108 0 1.4025 5 1.5007 3 1.6057 1.0750 0 1.1556 3 1.2423 0 1.3354 7 1.4356 3 1.5433 0 1.6590 8.50% 9.00% 9.50% 2.62147 2.76565 2.91776 3.07823 3.24754 3.42615 3.61459 3.81339 4.02313 4.24440 4.47784 4.72412 4.98395 5.50% 10.00% 11.00% 12.00% 1.08000 1.08500 1.09000 1.09500 1.10000 1.11000 1.12000 1.16640 1.17723 1.18810 1.19903 1.21000 1.23210 1.25440 1.25971 1.27729 1.29503 1.31293 1.33100 1.36763 1.40493 1.36049 1.38586 1.41158 1.43766 1.46410 1.51807 1.57352 1.46933 1.50366 1.53862 1.57424 1.61051 1.68506 1.76234 1.58687 1.63147 1.67710 1.72379 1.77156 1.87041 1.97382 1.71382 1.77014 1.82804 1.88755 1.94872 2.07616 2.21068 Table to question 2 3 8 1.5938 5 9 1.6894 8 10 1.7908 5 11 1.8983 0 12 2.0122 0 13 2.1329 3 14 2.2609 0 15 2.3965 6 16 2.5403 5 17 2.6927 7 18 2.8543 4 19 3.0256 0 20 3.2071 4 21 3.3995 6 22 3.6035 4 23 3.8197 5 24 4.0489 3 25 4.2918 7 26 4.5493 8 27 4.8223 5 28 5.1116 9 29 5.4183 9 30 5.7434 9 Period 6.00% s 9 1.6550 0 1.7625 7 1.8771 4 1.9991 5 2.1291 0 2.2674 9 2.4148 7 2.5718 4 2.7390 1 2.9170 5 3.1066 5 3.3085 9 3.5236 5 3.7526 8 3.9966 1 4.2563 9 4.5330 5 4.8277 0 5.1415 0 5.4757 0 5.8316 2 6.2106 7 6.6143 7 6.50% 8 1.7181 9 1.8384 6 1.9671 5 2.1048 5 2.2521 9 2.4098 5 2.5785 3 2.7590 3 2.9521 6 3.1588 2 3.3799 3 3.6165 3 3.8696 8 4.1405 6 4.4304 0 4.7405 3 5.0723 7 5.4274 3 5.8073 5 6.2138 7 6.6488 4 7.1142 6 7.6122 6 7.00% 5 1.7834 8 1.9172 4 2.0610 3 2.2156 1 2.3817 8 2.5604 1 2.7524 4 2.9588 8 3.1807 9 3.4193 5 3.6758 0 3.9514 9 4.2478 5 4.5664 4 4.9089 2 5.2770 9 5.6728 7 6.0983 4 6.5557 2 7.0473 9 7.5759 5 8.1441 4 8.7549 6 7.50% 1.85093 1.92060 1.99253 2.06687 2.14359 2.30454 2.47596 1.99900 2.08386 2.17189 2.26322 2.35795 2.55804 2.77308 2.15892 2.26098 2.36736 2.47823 2.59374 2.83942 3.10585 2.33164 2.45317 2.58043 2.71366 2.85312 3.15176 3.47855 2.51817 2.66169 2.81266 2.97146 3.13843 3.49845 3.89598 2.71962 2.88793 3.06580 3.25375 3.45227 3.88328 4.36349 2.93719 3.13340 3.34173 3.56285 3.79750 4.31044 4.88711 3.17217 3.39974 3.64248 3.90132 4.17725 4.78459 5.47357 3.42594 3.68872 3.97031 4.27195 4.59497 5.31089 6.13039 3.70002 4.00226 4.32763 4.67778 5.05447 5.89509 6.86604 3.99602 4.34245 4.71712 5.12217 5.55992 6.54355 7.68997 4.31570 4.71156 5.14166 5.60878 6.11591 7.26334 8.61276 4.66096 5.11205 5.60441 6.14161 6.72750 8.06231 9.64629 5.03383 5.54657 6.10881 6.72507 7.40025 8.94917 10.8038 5 5.43654 6.01803 6.65860 7.36395 8.14027 9.93357 12.1003 1 5.87146 6.52956 7.25787 8.06352 8.95430 11.0262 13.5523 7 5 6.34118 7.08457 7.91108 8.82956 9.84973 12.2391 15.1786 6 3 6.84848 7.68676 8.62308 9.66836 10.8347 13.5854 17.0000 1 6 6 7.39635 8.34014 9.39916 10.5868 11.9181 15.0798 19.0400 6 8 6 7 7.98806 9.04905 10.2450 11.5926 13.1099 16.7386 21.3248 8 1 9 5 8 8.62711 9.81822 11.1671 12.6939 14.4209 18.5799 23.8838 4 1 9 0 7 9.31727 10.6527 12.1721 13.8998 15.8630 20.6236 26.7499 7 8 3 9 9 3 10.0626 11.5582 13.2676 15.2203 17.4494 22.8923 29.9599 6 5 8 1 0 0 2 8.00% 8.50% 9.00% 9.50% 10.00% 11.00% 12.00% Table to question 2 Rate per period Table shows future value (FV) of $1.00 compounded for N periods at R rate per period. Table values can be generated using the formula N FV equals $ 1 left parenthesis 1 plus Upper R right parenthesis Superscript Upper NFV=$1(1+R) . Question 3A bank made a farmer a loan of 1,000 at 15% for three years compounded annually. Find the future value and the compound interest paid on the loan. Compare the compound interest with simple interest for the same period. Future value is? (round to the nearest cent as needed) 4. Tom Bond borrowed $6,200 at 8.5 percent for three years compounded annually. What is the compound amount of the loan and how much interest will he pay on the loan? Compound amount = (ROUND TO THE NEAREST CENT AS NEEDED) 5. A bank loaned John Smith $1,000 for six years compounded annually at 7%. How much interest was John required to pay on the loan? Use the $1.00 future value table or the future value and compound interest formula. Rate per period Periods 0.50% 1 1.00500 2 1.01003 3 1.01508 4 1.02015 5 1.02525 6 1.03038 7 1.03553 8 1.04071 9 1.04591 10 1.05114 1.00% 1.01000 1.02010 1.03030 1.04060 1.05101 1.06152 1.07214 1.08286 1.09369 1.10462 1.50% 1.01500 1.03023 1.04568 1.06136 1.07728 1.09344 1.10984 1.12649 1.14339 1.16054 2.00% 1.02000 1.04040 1.06121 1.08243 1.10408 1.12616 1.14869 1.17166 1.19509 1.21899 2.50% 1.02500 1.05063 1.07689 1.10381 1.13141 1.15969 1.18869 1.21840 1.24886 1.28008 3.00% 1.03000 1.06090 1.09273 1.12551 1.15927 1.19405 1.22987 1.26677 1.30477 1.34392 3.50% 1.03500 1.07123 1.10872 1.14752 1.18769 1.22926 1.27228 1.31681 1.36290 1.41060 4.00% 1.04000 1.08160 1.12486 1.16986 1.21665 1.26532 1.31593 1.36857 1.42331 1.48024 4.50% 1.04500 1.09203 1.14117 1.19252 1.24618 1.30226 1.36086 1.42210 1.48610 1.55297 5.00% 1.05000 1.10250 1.15763 1.21551 1.27628 1.34010 1.40710 1.47746 1.55133 1.62889 5.50% 1.05500 1.11303 1.17424 1.23882 1.30696 1.37884 1.45468 1.53469 1.61909 1.70814 Table to question 2 11 1.05640 1.11567 1.17795 1.24337 1.31209 1.38423 1.45997 1.53945 1.62285 12 1.06168 1.12683 1.19562 1.26824 1.34489 1.42576 1.51107 1.60103 1.69588 13 1.06699 1.13809 1.21355 1.29361 1.37851 1.46853 1.56396 1.66507 1.77220 14 1.07232 1.14947 1.23176 1.31948 1.41297 1.51259 1.61869 1.73168 1.85194 15 1.07768 1.16097 1.25023 1.34587 1.44830 1.55797 1.67535 1.80094 1.93528 16 1.08307 1.17258 1.26899 1.37279 1.48451 1.60471 1.73399 1.87298 2.02237 17 1.08849 1.18430 1.28802 1.40024 1.52162 1.65285 1.79468 1.94790 2.11338 18 1.09393 1.19615 1.30734 1.42825 1.55966 1.70243 1.85749 2.02582 2.20848 19 1.09940 1.20811 1.32695 1.45681 1.59865 1.75351 1.92250 2.10685 2.30786 20 1.10490 1.22019 1.34686 1.48595 1.63862 1.80611 1.98979 2.19112 2.41171 21 1.11042 1.23239 1.36706 1.51567 1.67958 1.86029 2.05943 2.27877 2.52024 22 1.11597 1.24472 1.38756 1.54598 1.72157 1.91610 2.13151 2.36992 2.63365 23 1.12155 1.25716 1.40838 1.57690 1.76461 1.97359 2.20611 2.46472 2.75217 24 1.12716 1.26973 1.42950 1.60844 1.80873 2.03279 2.28333 2.56330 2.87601 25 1.13280 1.28243 1.45095 1.64061 1.85394 2.09378 2.36324 2.66584 3.00543 26 1.13846 1.29526 1.47271 1.67342 1.90029 2.15659 2.44596 2.77247 3.14068 27 1.14415 1.30821 1.49480 1.70689 1.94780 2.22129 2.53157 2.88337 3.28201 28 1.14987 1.32129 1.51722 1.74102 1.99650 2.28793 2.62017 2.99870 3.42970 29 1.15562 1.33450 1.53998 1.77584 2.04641 2.35657 2.71188 3.11865 3.58404 30 1.16140 1.34785 1.56308 1.81136 2.09757 2.42726 2.80679 3.24340 3.74532 Periods 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% Rate per period Table shows future value (FV) of $1.00 compounded for N periods at R rate per period. Table values can be generated using the formula 1.71034 1.79586 1.88565 1.97993 2.07893 2.18287 2.29202 2.40662 2.52695 2.65330 2.78596 2.92526 3.07152 3.22510 3.38635 3.55567 3.73346 3.92013 4.11614 4.32194 5.00% 1.80209 1.90121 2.00577 2.11609 2.23248 2.35526 2.48480 2.62147 2.76565 2.91776 3.07823 3.24754 3.42615 3.61459 3.81339 4.02313 4.24440 4.47784 4.72412 4.98395 5.50% N FV equals $ 1 left parenthesis 1 plus Upper R right parenthesis Superscript Upper NFV=$1(1+R) . Rate per period Period 6.00% s 1 1.0600 0 2 1.1236 0 6.50% 7.00% 7.50% 8.00% 1.0650 0 1.1342 3 1.0700 0 1.1449 0 8.50% 9.00% 9.50% 10.00% 11.00% 12.00% 1.0750 1.08000 1.08500 1.09000 1.09500 1.10000 1.11000 1.12000 0 1.1556 1.16640 1.17723 1.18810 1.19903 1.21000 1.23210 1.25440 3 Table to question 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1.1910 2 1.2624 8 1.3382 3 1.4185 2 1.5036 3 1.5938 5 1.6894 8 1.7908 5 1.8983 0 2.0122 0 2.1329 3 2.2609 0 2.3965 6 2.5403 5 2.6927 7 2.8543 4 3.0256 0 3.2071 4 3.3995 6 3.6035 4 3.8197 5 4.0489 3 4.2918 7 4.5493 8 4.8223 1.2079 5 1.2864 7 1.3700 9 1.4591 4 1.5539 9 1.6550 0 1.7625 7 1.8771 4 1.9991 5 2.1291 0 2.2674 9 2.4148 7 2.5718 4 2.7390 1 2.9170 5 3.1066 5 3.3085 9 3.5236 5 3.7526 8 3.9966 1 4.2563 9 4.5330 5 4.8277 0 5.1415 0 5.4757 1.2250 4 1.3108 0 1.4025 5 1.5007 3 1.6057 8 1.7181 9 1.8384 6 1.9671 5 2.1048 5 2.2521 9 2.4098 5 2.5785 3 2.7590 3 2.9521 6 3.1588 2 3.3799 3 3.6165 3 3.8696 8 4.1405 6 4.4304 0 4.7405 3 5.0723 7 5.4274 3 5.8073 5 6.2138 1.2423 0 1.3354 7 1.4356 3 1.5433 0 1.6590 5 1.7834 8 1.9172 4 2.0610 3 2.2156 1 2.3817 8 2.5604 1 2.7524 4 2.9588 8 3.1807 9 3.4193 5 3.6758 0 3.9514 9 4.2478 5 4.5664 4 4.9089 2 5.2770 9 5.6728 7 6.0983 4 6.5557 2 7.0473 1.25971 1.27729 1.29503 1.31293 1.33100 1.36763 1.40493 1.36049 1.38586 1.41158 1.43766 1.46410 1.51807 1.57352 1.46933 1.50366 1.53862 1.57424 1.61051 1.68506 1.76234 1.58687 1.63147 1.67710 1.72379 1.77156 1.87041 1.97382 1.71382 1.77014 1.82804 1.88755 1.94872 2.07616 2.21068 1.85093 1.92060 1.99253 2.06687 2.14359 2.30454 2.47596 1.99900 2.08386 2.17189 2.26322 2.35795 2.55804 2.77308 2.15892 2.26098 2.36736 2.47823 2.59374 2.83942 3.10585 2.33164 2.45317 2.58043 2.71366 2.85312 3.15176 3.47855 2.51817 2.66169 2.81266 2.97146 3.13843 3.49845 3.89598 2.71962 2.88793 3.06580 3.25375 3.45227 3.88328 4.36349 2.93719 3.13340 3.34173 3.56285 3.79750 4.31044 4.88711 3.17217 3.39974 3.64248 3.90132 4.17725 4.78459 5.47357 3.42594 3.68872 3.97031 4.27195 4.59497 5.31089 6.13039 3.70002 4.00226 4.32763 4.67778 5.05447 5.89509 6.86604 3.99602 4.34245 4.71712 5.12217 5.55992 6.54355 7.68997 4.31570 4.71156 5.14166 5.60878 6.11591 7.26334 8.61276 4.66096 5.11205 5.60441 6.14161 6.72750 8.06231 9.64629 5.03383 5.54657 6.10881 6.72507 7.40025 8.94917 10.8038 5 5.43654 6.01803 6.65860 7.36395 8.14027 9.93357 12.1003 1 5.87146 6.52956 7.25787 8.06352 8.95430 11.0262 13.5523 7 5 6.34118 7.08457 7.91108 8.82956 9.84973 12.2391 15.1786 6 3 6.84848 7.68676 8.62308 9.66836 10.8347 13.5854 17.0000 1 6 6 7.39635 8.34014 9.39916 10.5868 11.9181 15.0798 19.0400 6 8 6 7 7.98806 9.04905 10.2450 11.5926 13.1099 16.7386 21.3248 Table to question 2 5 0 7 9 8 1 9 28 5.1116 5.8316 6.6488 7.5759 8.62711 9.81822 11.1671 12.6939 14.4209 9 2 4 5 4 1 9 29 5.4183 6.2106 7.1142 8.1441 9.31727 10.6527 12.1721 13.8998 15.8630 9 7 6 4 7 8 3 9 30 5.7434 6.6143 7.6122 8.7549 10.0626 11.5582 13.2676 15.2203 17.4494 9 7 6 6 6 5 8 1 0 Period 6.00% 6.50% 7.00% 7.50% 8.00% 8.50% 9.00% 9.50% 10.00% s Rate per period Table shows future value (FV) of $1.00 compounded for N periods at R rate per period. Table values can be generated using the formula 5 18.5799 0 20.6236 9 22.8923 0 11.00% N FV equals $ 1 left parenthesis 1 plus Upper R right parenthesis Superscript Upper NFV=$1(1+R) . 6. 7. Find the compound interest on a $3,500 investment at 75% compounded daily for 25 days. LOADING... Click the icon to view the table of compound interest of $100 compounded daily. (Table below) Compound Interest on $100, Compounded Daily (365 Days) (Exact Time, Exact Interest Basis) Annual rate for selected rates Days0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 2.50% 1 0.001370 0.002055 0.002740 0.003425 0.004110 0.004795 0.005479 0.006164 0.006849 2 0.002740 0.004110 0.005480 0.006849 0.008219 0.009589 0.010959 0.012329 0.013699 3 0.004110 0.006165 0.008219 0.010274 0.012329 0.014384 0.016439 0.018494 0.020549 4 0.005480 0.008219 0.010959 0.013699 0.016439 0.019179 0.021920 0.024660 0.027400 5 0.006850 0.010274 0.013699 0.017124 0.020550 0.023975 0.027400 0.030826 0.034251 6 0.008219 0.012329 0.016439 0.020550 0.024660 0.028771 0.032881 0.036992 0.041103 7 0.009589 0.014384 0.019180 0.023975 0.028771 0.033566 0.038362 0.043159 0.047955 8 0.010959 0.016440 0.021920 0.027401 0.032881 0.038363 0.043844 0.049326 0.054808 9 0.012329 0.018495 0.024660 0.030826 0.036992 0.043159 0.049326 0.055493 0.061661 10 0.013699 0.020550 0.027401 0.034252 0.041103 0.047956 0.054808 0.061661 0.068514 11 0.015070 0.022605 0.030141 0.037678 0.045215 0.052752 0.060290 0.067829 0.075368 12 0.016440 0.024660 0.032882 0.041104 0.049326 0.057549 0.065773 0.073998 0.082223 13 0.017810 0.026716 0.035622 0.044530 0.053438 0.062347 0.071256 0.080167 0.089078 14 0.019180 0.028771 0.038363 0.047956 0.057550 0.067144 0.076740 0.086336 0.095933 15 0.020550 0.030826 0.041104 0.051382 0.061662 0.071942 0.082223 0.092506 0.102789 8 23.8838 7 26.7499 3 29.9599 2 12.00% Table to question 2 16 0.021920 0.032882 0.043845 0.054809 0.065774 0.076740 0.087707 0.098676 0.109645 17 0.023290 0.034937 0.046586 0.058235 0.069886 0.081538 0.093192 0.104846 0.116502 18 0.024660 0.036993 0.049327 0.061662 0.073998 0.086337 0.098676 0.111017 0.123359 19 0.026031 0.039048 0.052068 0.065089 0.078111 0.091135 0.104161 0.117188 0.130217 20 0.027401 0.041104 0.054809 0.068515 0.082224 0.095934 0.109646 0.123360 0.137075 21 0.028771 0.043160 0.057550 0.071942 0.086337 0.100733 0.115132 0.129532 0.143934 22 0.030141 0.045215 0.060291 0.075370 0.090450 0.105533 0.120617 0.135704 0.150793 23 0.031512 0.047271 0.063033 0.078797 0.094563 0.110332 0.126103 0.141877 0.157653 24 0.032882 0.049327 0.065774 0.082224 0.098677 0.115132 0.131590 0.148050 0.164513 25 0.034252 0.051383 0.068516 0.085652 0.102790 0.119932 0.137076 0.154224 0.171374 Table shows interest (I) on $100 compounded daily for N days at an annual rate of R. Table values can be generated using the formula 100 left parenthesis 1 plus StartFraction Upper R Over 365 EndFraction right parenthesis Superscript Upper N Baseline minus 100.1001+R365 N???100. 8. John Smith has found a short??term investment opportunity. He can invest $5,000 at .75% interest for 10 days. How much interest will he earn on this investment if the interest is compounded daily? LOADING... Click the icon to view the table of compound interest of $100 compounded daily. (table below) Compound Interest on $100, Compounded Daily (365 Days) (Exact Time, Exact Interest Basis) Annual rate for selected rates Days0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 2.50% 1 0.001370 0.002055 0.002740 0.003425 0.004110 0.004795 0.005479 0.006164 0.006849 2 0.002740 0.004110 0.005480 0.006849 0.008219 0.009589 0.010959 0.012329 0.013699 3 0.004110 0.006165 0.008219 0.010274 0.012329 0.014384 0.016439 0.018494 0.020549 4 0.005480 0.008219 0.010959 0.013699 0.016439 0.019179 0.021920 0.024660 0.027400 5 0.006850 0.010274 0.013699 0.017124 0.020550 0.023975 0.027400 0.030826 0.034251 6 0.008219 0.012329 0.016439 0.020550 0.024660 0.028771 0.032881 0.036992 0.041103 7 0.009589 0.014384 0.019180 0.023975 0.028771 0.033566 0.038362 0.043159 0.047955 8 0.010959 0.016440 0.021920 0.027401 0.032881 0.038363 0.043844 0.049326 0.054808 9 0.012329 0.018495 0.024660 0.030826 0.036992 0.043159 0.049326 0.055493 0.061661 10 0.013699 0.020550 0.027401 0.034252 0.041103 0.047956 0.054808 0.061661 0.068514 11 0.015070 0.022605 0.030141 0.037678 0.045215 0.052752 0.060290 0.067829 0.075368 12 0.016440 0.024660 0.032882 0.041104 0.049326 0.057549 0.065773 0.073998 0.082223 13 0.017810 0.026716 0.035622 0.044530 0.053438 0.062347 0.071256 0.080167 0.089078 14 0.019180 0.028771 0.038363 0.047956 0.057550 0.067144 0.076740 0.086336 0.095933 15 0.020550 0.030826 0.041104 0.051382 0.061662 0.071942 0.082223 0.092506 0.102789 16 0.021920 0.032882 0.043845 0.054809 0.065774 0.076740 0.087707 0.098676 0.109645 17 0.023290 0.034937 0.046586 0.058235 0.069886 0.081538 0.093192 0.104846 0.116502 18 0.024660 0.036993 0.049327 0.061662 0.073998 0.086337 0.098676 0.111017 0.123359 19 0.026031 0.039048 0.052068 0.065089 0.078111 0.091135 0.104161 0.117188 0.130217 Table to question 2 20 0.027401 0.041104 0.054809 0.068515 0.082224 0.095934 0.109646 0.123360 0.137075 21 0.028771 0.043160 0.057550 0.071942 0.086337 0.100733 0.115132 0.129532 0.143934 22 0.030141 0.045215 0.060291 0.075370 0.090450 0.105533 0.120617 0.135704 0.150793 23 0.031512 0.047271 0.063033 0.078797 0.094563 0.110332 0.126103 0.141877 0.157653 24 0.032882 0.049327 0.065774 0.082224 0.098677 0.115132 0.131590 0.148050 0.164513 25 0.034252 0.051383 0.068516 0.085652 0.102790 0.119932 0.137076 0.154224 0.171374 Table shows interest (I) on $100 compounded daily for N days at an annual rate of R. Table values can be generated using the formula 100 left parenthesis 1 plus StartFraction Upper R Over 365 EndFraction right parenthesis Superscript Upper N Baseline minus 100. 9. Find the amount that should be set aside today to yield the desired future amount. Future amount needed Interest rate Compounding period Investment time $4,000 24% semiannually 22 years LOADING... Click the icon to view the present value of $1.00 table. (table below) Rate per period Period 0.5% 1% 1.5% 2% 2.5% 3% 4% 5% 6% s 0.961540.952380.9434 1 0.995020.990100.985220.980390.975610.97087 0 2 0.990070.980300.970660.961170.951810.942600.924560.907030.8900 3 0.985150.970590.956320.942320.928600.91514 0 4 0.980250.960980.942180.923850.905950.888490.889000.863840.8396 5 0.975370.951470.928260.905730.883850.86261 2 6 0.970520.942050.914540.887970.862300.837480.854800.822700.7920 9 7 0.965690.932720.901030.870560.841270.81309 8 0.960890.923480.887710.853490.820750.789410.821930.783530.7472 6 9 0.956100.914340.874590.836760.800730.76642 10 0.951350.905290.861670.820350.781200.744090.790310.746220.7049 6 11 0.946610.896320.848930.804260.762140.72242 12 0.941910.887450.836390.788490.743560.701380.759920.710680.6650 6 13 0.937220.878660.824030.773030.725420.68095 14 0.932560.869960.811850.757880.707730.661120.730690.676840.6274 1 15 0.927920.861350.799850.743010.690470.64186 0.702590.644610.5919 16 0.923300.852820.788030.728450.673620.62317 0 17 0.918710.844380.776390.714160.657200.60502 18 0.914140.836020.764910.700160.641170.587390.675560.613910.5583 9 19 0.909590.827740.753610.686430.625530.57029 20 0.905060.819540.742470.672970.610270.553680.649580.584680.5267 9 0.624600.556840.4969 7 0.600570.530320.4688 4 0.577480.505070.4423 8% 10% 12% 0.925930.909090.89286 0.857340.826450.79719 0.793830.751310.71178 0.735030.683010.63552 0.680580.620920.56743 0.630170.564470.50663 0.583490.513160.45235 0.540270.466510.40388 0.500250.424100.36061 0.463190.385540.32197 0.428880.350490.28748 0.397110.318630.25668 0.367700.289660.22917 0.340460.263330.20462 Table to question 2 0 0.555260.481020.4172 7 0.533910.458110.3936 5 0.513370.436300.3713 6 0.493630.415520.3503 4 0.474640.395730.3305 1 0.456390.376890.3118 0 0.315240.239390.18270 0.291890.217630.16312 0.270270.197840.14564 0.250250.179860.13004 0.231710.163510.11611 0.214550.148640.10367