1. log 7x =-2 in its equivalent exponential form is
2. Find x and express your answer in terms of natural logarithms. e 6x =5 x = ?
3. $10,000 was deposited into an investment account earning interest at a nominal rate of 9% compounded monthly for eight years. How much interest was earned in the fifth year?
4. You invest $1500 today and another $2000 18-months from today in a fund earning j4=8% for the first 18 months followed by j2=6% thereafter. How much do you have at the end of 4 years?
5. A loan of $15,000 is taken out with interest at j4=8%. What is the total amount of interest due on the loan in the second year?
6. You shop around for the best interest rate and have narrowed your choices to the following: Bank I: j1=12% Bank II :j4=11.55% Bank III:j12=11.30% You wish to have $S in 3 years. What is the present value of S? Put the banks in order, from lowest to highest present value of S.
7. What simple interest rate, r, is equivalent to j12=9% over a 2-year period?
8. You are investing a sum of money. Rank the following interest in order of which one will give you the most interest. a. j2=8.00% b.j12=7.95% c.j52=7.90%
9. You buy a motor boat worth $13,400. You can pay cash, or chose one of two payment options:Option 1: Pay $10,000 in one year and $5000 in two yearsOption 2: Pay $17,400 in 3 yearsIf the interest rate on both options is j12=9%, which one should you take and how much cheaper is it compared to paying cash?
10. A loan of $5000 is taken out today. It is due with interest at j4=8% in 2 years. Instead, the borrower negotiates with the lender to pay $2500 in 1 year and $X in 3 years. If the lender can reinvest any payment at j2=5%, what is the value of X?
11. Suppose you deposit $10,000 on March 21 in a fund earning simple interest at r = 13%. How much will you have exactly 6 months later?
12. Jim lends $8000 to Sally on September 23, 2006. Sally signs a promissory note, with the note due in 10 months. The maturity value of the note is $8536.55. Jim sells the note to a bank on February 23, 2007. If the bank wishes to earn r = 8%, what price does Jim get for the note?
13. What is the price of a $100,000 182-day T-bill if the yield rate is 5%?.
14. A person borrows $100,000 at a simple interest rate r = 24%. He is to repay the loan with 2 payments, one at the end of 2 months and the other at the end of 6 months. The first payment is the same as the 2nd payment. Determine the size of the payments, using the end of 6 months as the focal date.
15. A debt of $3000 is due in 4 months and another $5000 is due in 9 months. Instead, it is agreed that a payment of $X, made in 3 months, followed by a payment of $4000 in 10 months, will fully pay off the loan. Using 9 months as the focal date, what is X if the simple interest rate on the loan is r = 10%?
16. A person owes $4000 ten (10) months from now. It is agreed that she can, instead, pay $X now and another $2000 two years from now to replace the given debts. If simple interest isr=9%, what is X using 8 months as the focal date?
17. A loan is to be paid by installments of $800 1-month from now, $600 3-months from now, and $500 4-months from now. Instead of this payment scheme, the borrower wishes to make one single payment 2 months from now. What is the amount of the alternative single payment using a focal date of 3 months and r = 6%?