# Financial Mathematics

Find the simple interest for each loan:

1. $15,903 at 8% for 8 months

3. $42,368 at 5.22% for 5 months

5. For a given amount of money at a given interest rate for a given time period, does simple

interest or compound interest produce more interest?

Find the compound amount in each loan:

7. $19,456.11 at 12% compounded semi-annually for 7 years

9. $57,809.34 at 12% compounded quarterly for 5 years

Find the amount of interest earned by each deposit:

11. $12,699.36 at 10% compounded semi-annually for 7 years

13. $34,677.23 at 9.72% compounded monthly for 32 months

15. $42,000 in 7 years, 12% compounded monthly

17. $1347.89 in 3.5 years, 6.77% compounded semi-annually

Geometric Sequence (GP):

21. Find the sixth term of the geometric sequence

23. Find the sum of the first four terms of the geometric sequence

25. Find S 30, 01 [Please refer to the attachment for the correct notation].

27. What is meant by the future value of an annuity?

Find the future value of each annuity:

29. $1288 deposited at the end of each year for 14 years; money earns 8% compounded annually

31. $233 deposited at the end of each month for 4 years; money earns 12% compounded monthly

33. $11,900 deposited at the beginning of each month for 13 months; money earns 12% compounded monthly

35. $6500; money earns 8% compounded annually; 6 annual payments

37. $233,188; money earns 9.7% compounded quarterly for years

Find the present value of each ordinary annuity:

39. Deposits of $850 annually for 4 years at 8% compounded annually

41. Payments of $4210 semi-annually for 8 years at 8.6% compounded semi-annually

43. Give two examples of the types of loans that are commonly amortized.

Find the amount of the payment necessary to amortize each loan.

45. $3200; 8% compounded quarterly; 10 quarterly payments

47. $51,607; 13.6% compounded monthly; 32 monthly payments

Find the monthly house payments for each mortgage:

49. $77,110 at 11.45% for 3 years

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#### Solution Summary

This solution is comprised of detailed step-by-step calculation and explanation of the given problems. The solution also provides students with a clear perspective of the underlying financila and mathematical concepts.