Math 142 – Nov 8, 2011 Name:Module 5: Simple and Compound InterestFormulas: I= prt, A=P(1+rt), A=P(1+rn)nt, I=A−P.1. Determine how much simple interest $300 earns at 5% in 4 years. Ans(1)_________2. Determine how much simple interest $5,000 earns at 2.75% in 18 months.Ans(2)_________3. Determine the principal needed now so that it earns $50 in simple interest after 2 years at 4.5%.Ans(3)_________4. Suppose $700 principal accrued $100 in interest after 4 years. What was the simple interest rate?Ans(4)_________5. Find the simple interest future value of $450 at 6% after 30 months.Ans(5)_________6. A principal of $1,000 grew to $1,500 at 4.3% simple interest. How much timepassed?Ans(6)_________7. A bank loans Irving $2,000 at 6% simple interest, the loan being due in full inone year. The bank allows Irving to spread his payment out over 12 equal-size payments. Find the size of each payment.Ans(7)_________8. What is the future value of $1,500, growing at 5.1% compounded monthly, for5 years?Ans(8)_________9. What is the interest earned in problem 8?Ans(9)_________10. What principal is needed now so that it has a future value of $5,000 after 4 years at 3.98%, compounded annually?Ans(10)_________11. Larry has $10,000. He has two investment options: (a) a simple-interestaccount at 7% and (b) a compound interest account at 5%, compounded monthly.a) After 5 years, which account has more? Calculate the sum in each accountand state which account has more, and by how much.Ans(11a)__________________b) After 15 years, which account has more? Calculate the sum in each account and state which account has more, and by how
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