Question: Write either True or False for the following five questions. ______1. An amount of money earns less interest when interest is compounded monthly than when

Write either True or False for the following five questions. ______1. An amount of money earns less interest when interest is compounded monthly than when interest is compounded quarterly ______2. When the final value of an investment is known it is not possible to determine the amount that was initially invested. ______3. Doubling the interest rate on a loan more than doubles the total interest. ______4. The more frequent the compounding period, the less the effects of any changes to the investment or loan. ______5. Everything equal, simple interest will earn less money in a savings account than compound interest Choose the most correct answer for each of the following questions. 6. In the Simple Interest Formula, I = P r t, a. I = Interest rate b. P = Interest earned c. r = Interest rate expressed as a percent d. t = length of time expressed in years 7. Kyle wants to save for a new motorcycle. He deposits $2500 in a special savings account earning 6.25% interest per year, compounded semi-annually for 3 years. What is the value of 'i' a. 0.0625 b. 0.03125 c. 6.25 d. 0.208333 8. A bank is offering a special three-year investment certificate paying 3.25% per year, compounded monthly. You deposit $1500 in an account for 6 years. What is the value of 'nt' a. 6 b. 0.0325 c. 72 d. 12 9. If James loaned $3000 to a friend at 4% interest for 2 years. The simple interest would be: a. $240 b. $24000 c. $3244.80 d. $244.80 10. Calculate the interest earned on $800 invested at 7.2% per year, simple interest, for 18 months a. $1036.80 b. $4.80 c. $86.40 d. $391.58 11.You deposited $5000 in an investment fund that pays 4.5% per year, compounded quarterly. How much interest will you earn over a period of five years? a. $225.00 b. $228.83 c. $1246.02 d. $1253.75 12.Jared borrowed $4000 a year ago at an annual interest rate of 7.9%, compounded quarterly. The loan was to be paid off in four years, but he wants to pay it off now. How much should his creditor expect as a payout of the loan? a. $2925.23 b. $2934.03 c. $2951.03 d. $3163.26

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