Student: Stephanie Studenny Instructor: Lakshmi Dube
Assignment: Assignment 4
Date: 9/30/17 Course: Math 208/2 Section CC
1. Using the formula for simple interest and the given values, find I.
P = $800; r = 6%; t = 4 years; I = ?
I=$
2. Use the formula for simple interest, I = Prt, to find the indicated quantity.
I = $66; r = 6%; t = 6 months; P = ?
P = $ (Type an integer or a decimal.)
3. Use the formula for simple interest, I = Prt, to find the indicated quantity. Assume a 360 day year.
I = $66; P = $2200; t = 270 days; r = ?
r= % (Simplify your answer.)
4. Lupe put $24,000 in a certificate of deposit that gained interest at a rate of 5.5%. How much interest did the account
gain after 3 months?
The account gained $ interest after 3 months. (Round to the nearest cent as needed.)
5. Given the annual interest rate and the compounding period, find i, the interest rate per compounding period.
10% compounded monthly
i= % per month
(Type an integer or decimal rounded to the nearest thousandth as needed.)
6. How long will it take money to quadruple if it is invested at the following rates?
(A) 5.1% compounded monthly
(B) 9.3% compounded monthly
(A) years
(Round to two decimal places as needed.)
(B) years
(Round to two decimal places as needed.)
7. How long will it take $3,000 to grow to $9,000 if it is invested at 4% compounded monthly?
years (Round to the nearest tenth of a year.)
8. An Individual Retirement Account (IRA) has $17,000 in it, and the owner decides not to add any more money to the
account other than interest earned at 7% compounded daily. How much will be in the account 27 years from now when
the owner reaches retirement age?
There will be $ in the account.
(Round to the nearest cent. Use a 365-day year.)
9. Polson Associates bought a new computer system. To pay for the system, they borrowed $41,950 from the bank at
3
8 % interest for 130 days. Find the simple interest. Round dollar amounts to the nearest cent. Use 360 days.
4
A. $3670.63
B. $1315.31
C. $1325.50
D. $1307.35
10. HarbourTown Marina purchased four boat lifts for raising and lowering large boats into the water. The boat lifts cost
$61,300 each. They borrowed the money from the bank for 240 days at 10%. Find the maturity value. Round dollar
amounts to the nearest cent. Use 360 days.
A. $65,386.67
B. $67,430.00
C. $261,546.67
D. $269,720.00
11. Find the compound interest earned. Round to the nearest cent.
$700 at 8% compounded semiannually for 4 years
A. $595.65
B. $252.34
C. $118.90
D. $258.00
12. Jennifer invested $4,000 in her savings account for 6 years. When she withdrew it, she had $5,208.51. Interest was
compounded continuously. What was the interest rate on the account? Round to the nearest tenth of a percent.
A. 4.6%
B. 4.3%
C. 4.5%
D. 4.4%
13. An actuary for a pension fund need to have $14.6 million grow to $22 million in 6 years. What interest rate
compounded annually does he need for this investment to growth as specified. Round your answer to the nearest
hundredth of a percent.
A. 7.70%
B. 7.07%
C. 7.00%
D. 0.07%
14. Cara knows that she will need to buy a new car in 3 years. The car will cost $15,000 by then. How much should she
invest now at 12%, compounded quarterly, so that she will have enough to buy a new car? Round to the nearest cent
as needed.
A. $9532.77
B. $11,957.91
C. $10,520.70
D. $12.594.29
15. Rental costs for office space have been going up at 9.8% per year compounded annually for the past 6 years. If office
space rent is now $27 per square foot per month, what were the rental rates 6 years ago?
The rates 6 years ago were about $ per square foot.
(Round to two decimal places as needed.)
