Math 1304 Name___________________________________ Interest Directions: Please show enough work to justify your answers. Use the simple interest formula A = Prt or the compound interest formulas A = P 1 + r nt and A = Pe rt n 1) Levi borrowed $7171 at 6% simple interest for 7 months. How much will the interest amount to? What is the total amount that Levi will have to pay back at the end of 7 months? Round answers to the nearest cent if necessary. 1) 2) Hannah borrowed $54,110 at 6% simple interest for 15 months. How much will the interest amount to? What is the total amount that she will have to pay back at the end of 15 months? Round answers to the nearest cent if necessary. 2) 3) $4001 invested for 7 years at 3% compounded quarterly 3) 4) $2500.29 invested for 6 years at 5% compounded monthly 4) 5) Find the accumulated value of an investment of $20,000 at 12% compounded semiannually for 11 years. 5) 6) Find the accumulated value of an investment of $3000 at 8% compounded continuously for 4 years. 6) 7) Letitia borrows $6250 at a rate of 10% compounded quarterly. Find how much Letitia owes at the end of 4 years. 7) Use: A = P 1 + r nt . Round to two decimal places. n 8) Find the accumulated value of an investment of $7000 at 8% compounded continuously for 5 years. B-1 8) Answer Key Testname: INTEREST 1) 2) 3) 4) 5) 6) 7) 8) $250.99; $7421.99 $4058.25; $58,168.25 $4932.08 $3372.94 $72,070.75 $4131.38 $9278.16 $10,442.77 B-2