Summary - Lab 9 - Compound Interest & Annuities.

Question 1 options:

Find the value using the table below:

Simple Interest	Compound Interest
Interest	Future Value	Once a year	n times a year	Present Value
I = P R T	A = P(1 + rt)	A = P(1 + rt)	A = P + r/n) nt	P =(A/1+r/n)n

Find the simple interest owed for the use of the money. Principal$7000, r=3%, t= 2 yearsIdentify P, r, t, and I and then solve for the unknown.

Question 2 options:

Find the value using the table below:

Simple Interest	Compound Interest
Interest	Future Value	Once a year	n times a year	Present Value
I = P R T	A = P(1 + rt)	A = P(1 +r) t	A = P(1 +)	P =(A/1+r/n)n

How much should you put in an investment paying simple interest rate of 8% if you need 4000 in six months? Identify P, r, t, and I.Solve for the unknown.

P =

r =

t =

I =

Question 3 options:

Find the value using the table below:

Simple Interest	Compound Interest
Interest	Future Value	Once a year	n times a year	Present Value
I = P R T	A = P(1 + rt)	A =P(1+ r)t	A = P(1 +)	P = (A/1+r/n)n

If you deposit $100 into an account making 2% compounded monthly, what would the value be in 2 years? Identify P, r, t, n and A. Solve for the unknown quantity.

P =

r =

t =

n =

A =

Question 4 options:

Find the value using the table below:

Simple Interest	Compound Interest
Interest	Future Value	Once a year	n times a year	Present Value
I = P R T	A = P(1 + rt)	A = P(1+ r)t	A = P(1 +)	P = (A/1+r/n)n

If you deposit $200 into an account that earns 3% compounded monthly, how much money would you have in 12 years? How much interest did you earn? Identify P, r, t, n and A. Solve for the unknown.

P =

r =

t =

n =

A =

Question 5 options: Find the value using the table below:

Simple Interest	Compound Interest
Interest	Future Value	Once a year	n times a year	Present Value
I = P R T	A = P(1 + rt)	A = P(1+ r)t	A = P(1 +)	P = (A/1+r/n)n

How much do you need to deposit today to have $15,000 in 5 years with a 7%interest rate compounded quarterly. Identify P, r, t, n and A. Solve for the unknown.

P =

r =

t =

n =

A =

Interest =

Question 6 options:

Find the value using the table below:

Annuity
Once a Year	Future Value	Planning for the Future
A= P(1+r)t-1/r	A=p(1+r/n)nt-1/(r/n)	P= A(r/n)/(1+r/n)nt-1

You decided to deposit $50monthly into an account making 3%compounded monthly. How much will you have in your account in 10 years? How much did you earn in interest. Solve for the unknown.

P =

r =

t =

n =

A =

Interest =

Question 7 option. Find the value using the table below:

Annuity
Once a Year	Future Value	Planning for the Future
A= P(1+r)t-1/r	A=p(1+r/n)nt-1/(r/n)	P= A(r/n)/(1+r/n)nt-1

How much do you need to deposit in an account quarterly to have $750,000 for retirement in 30 years with a 10% interest rate? How much money did you deposit into the account during the 30 years? How much interest did you earn? Identify P, r, t, n and A. Solve for the unknown.

P =

r =

t =

n =

A =

Amount Deposited =

Interest =

Question 8 options:

Find the value using the table below:

Annuity
Once a Year	Future Value	Planning for the Future
A= P(1+r)t-1/r	A=p(1+r/n)nt-1/(r/n)	P= A(r/n)/(1+r/n)nt-1

You deposit $125monthly into an account that earns 8% compounded monthly. How much do you have in 30 years? How much did you earn in interest? Identify P, r, t, n and A. Solve for the unknown.

P =

r =

t =

n =

A =

Amount Deposited =

Interest =

The credit card with the transactions described on the right uses the average daily balance method to calculate interest. The monthly interest rate is 2.5% of the average daily balance. Calculate parts a-d using the statement on the right.		Transaction Description	Transaction Amount
Previous balance, $6320.00
March 1 Billing date
March 5 Payment	$300.00 credit
March 7 Charge: Restaurant	$30.00
March 12 Charge: Groceries	$100.00
March 21 Charge: Car Repairs	$220.00
March 31 End of billing period
Payment Due Date: April 9

Question content area bottom

Part 1

a. Find the average daily balance for the billing period. Round to the nearest cent.

The average daily balance for the billing period is

(Round to the nearest cent as needed.)

Part 2

b. Find the interest to be paid on April 1, the next billing date. Round to the nearest cent.

The interest to be paid on April 1 is

$enter your response here.

(Use the answer from part a to find this answer. Round to the nearest cent as needed.)

c. Find the balance due on April 1.

(Use the answer from part b to find this answer.)