Section 5.2 Practice Problems 1. Find the compound amount and the interest earned for the following deposit: $470 at 8% compounded annually for 10 years 2. Find the compound amount and the interest earned for: $10,000 at 0.85% compounded daily for 1 year. 3. Find the interest rate (with annual compounding) that makes the statement true: $3000 grows to $3606 in 5 years 4. Find the APY corresponding to the nominal rate: 4% compounded quarterly 5. Assume an annual inflation rate of 2.07%. Find the previous price of: How much did an item that costs $5000 now cost 4 years prior 49. A small business borrows $50,000 for expansion at 9% com- pounded monthly. The loan is due in 4 years. How much inter- est will the business pay? 53. As the prize in a contest, you are offered $1000 now or $1210 in 5 years. If money can be invested at 6% compounded annually, which is larger? 54. Two partners agree to invest equal amounts in their business. One will contribute $10,000 immediately. The other plans to contribute an equivalent amount in 3 years, when she expects to acquire a large sum of money. How much should she contribute at that time to match her partner's investment now, assuming an interest rate of 6% compounded semiannually? 56. In the Vanguard Information Technology Index Fund, a $10,000 investment grew to $16,904.75 over the 10-year period 2003- 2013. Find the annual interest rate, compounded yearly, that this investment earned