Math 103 1. Simple Interest Unit 7 Practice Problems a) A bank pays 4% simple intern. If we invest $2500 in this areat, bow work will sher 15 years? Vakili b) An account that pays 3.5% single interest gee to 1000 is 12 years. What was the principal investment 2. Compounded Interest a) A bank los $15.000 at the anal interest rate of 2.25% composed mostly for your L. At the end of the seventh year how wnch money we have to give to the bank to pen this w H. How much interest did the bank collect from us for this k b) A bank offers a five-year certificate of deposit that pays 2.5% tent of this CD is $10,000 at the end of the fifth year, whe 3. Compounded Continuously del quarterly. If the val a) We bonowed $2500 Bom a bank at 5% anal interest rate compeded costly for 3 years. At the ead of the third year how much cory is due at the look to pay of the l b) The account balance in a CD after 40 years is $2500 the l item te continously, what was the principal 4. Yield Bank X pays 2.75% anal intent composed monthly. Black Y pays : semi-annually. Which bank pays better? 5. Inflation 7% de Maria retired with an annual pension of $65,000. Maria spends $55,000 on goods, services, and fixed costs (like mortgage and insurance) annually. If the annual rate of inflation is 2.25% would Maria be able to main the same standards of living in 10 years? 6. Cash Flow a) What is the annual cash flow for a present value of $250,000 at an annual rate of 4.5%2 b) An account with a rate of 5% has an annual cash flow of $8,500. What is the present value of this account? 7. Logarithms for Solving for Time a) A CD pays 1.75% compounded monthly. How long will it take for a principal investment of $25,000 to grow to $40,000? b) A bank pays 2.25% compounded continuously. How long will it take for a principal amount to double in value