Word problems (theyre easy im just dumb)?

1) The principle represents an amount of money deposited in a savings account subject to compound interest at the rate shown. Use the formula


A = P(1 + )nt


to find how much money will be in the account after the given number of years and how much interest was earned in that period.


principal: $5000


rate: 7%


compounding periods per year: 2


time: 4 years


A) amount in account: $8590.93; interest earned: $3590.93


B) amount in account: $5737.62; interest earned: $737.62


C) amount in account: $6553.98; interest earned: $1553.98


D) amount in account: $6584.05; interest earned: $1584.05





5) Solve using the formula for the effective annual yield, y = (1 + )n - 1.


A passbook savings account has a rate of 11.7%. Find the effective annual yield if the interest is compounded semiannually.


A) 11.9%


B) 11.8%


C) 12.1%


D) 12%





6) Solve the problem.


112 is what percent of 80?


A) 140%


B) 1400%


C) 14%


D) 1.4%





7) The principle represents an amount of money deposited in a savings account subject to compound interest at the rate shown. Use the formula


A = P(1 + )nt


to find how much money will be in the account after the given number of years and how much interest was earned in that period.


principal: $8000


rate: 4%


compounding periods per year: 1


time: 3 years


A) amount in account: $8998.91; interest earned: $998.91


B) amount in account: $1,000,000.00; interest earned: $992,000.00


C) amount in account: $9021.91; interest earned: $1021.91


D) amount in account: $24,960.00; interest earned: $16,960.00








12) 75% of 72 is what number?


A) 9.6


B) 540


C) 54


D) 6





13) In terms of paying less in interest over the full term of the mortgage, which is more economical for a $200,000 mortgage : 30-year fixed at 7.00% or 20 fixed at 6.50%?


A) The 30 fixed rate at at 7.00% is more economical.


B) The 20 fixed rate at at 6.50% is more economical.


C) They are the same.





14) Suppose that the luxury sales tax rate in a foreign country is 14%. A very wealthy socialite bought a diamond tiara for $97,000. How much tax does she pay?


A) $136


B) $13,580


C) $6929


D) $1358








15) James and Susan wish to have $10,000 available for their wedding in 3 years. How much money should they set aside now at 6% compounded monthly in order to reach their financial goal?


A) $9419.05


B) $10,616.78


C) $8356.45


D) $3333.33











16) The principal P is borrowed at simple interest rate r for a period of time t. Find the simple interest owed for the use of the money. Assume 360 days in a year and round answer to the nearest cent.


P = $6700


r = 5.5%


t = 22 months


A) $737.00


B) $7375.58


C) $8107.00


D) $675.58








17) Determine the present value, P, you must invest to have the future value, A, at simple interest rate r after time t. Round answer to the nearest dollar.


A = $186.00


r = 6%


t = 4 years


A) $157


B) $154.60


C) $150


D) $154|||1-d


5-c


6-a


some homework HELP|||Nobody is answering... Have a smile :-)