# Interest and Rate Value Calculations

1. Find the exact interest. Use 365 days in a year, and use the exact number of days in a month. Round to the nearest cent, if necessary.

$1080 at 11 1/2% for 80 days

A) $124.20

B) $27.22

C) $26.04---my answer

D) $27.60

2. Find the sum of the first five terms of the geometric sequence.

a = 5, r = 4

A) 1715

B) 1704

C) 1701

D) 1705---my answer

3. Find the compound interest earned by the deposit. Round to the nearest cent. $11,000 at 11% compounded annually for 16 years

A) $18,150.00

B) $47,419.84

C) $41,630.48

D) $19,360.00---my answer

4. Find the sum of the first five terms of the geometric sequence.

a = 1, r = -3

A) 121---my answer

B) 61

C) -121

D) -61

5. Find the effective rate corresponding to the given nominal rate, Round results to the nearest 0.01 percentage points. 3% compounded quarterly

A) 3.02%

B) 3.03%

C) 3.04%---my answer

D) 3.00%

6. Find the compound amount for the deposit. Round to the nearest cent.

$8370 at 10% compounded semiannually for 5 years

A) $13,479.97

B) $10,682.48

C) $12,555.00

D) $13,633.85---my answer

7. Find the exact interest. Use 365 days in a year, and use the exact number of days in a month. Round to the nearest cent, if necessary.

$3200 at 13% for 151 days

A) $17.45

B) $172.10---my answer

C) $17.21

D) $174.49

8. Find the payment necessary to amortize the loan.

$2500; 6% compounded annually;7 annual payments

A) $447.84---my answer

B) $402.59

C) $508.41

D) $452.21

9. Find the value. S-|

13|0.04

A) 15.026

B) 16.627

C) 18.292

D) 41.627

10. Find the proceeds. Assume 365 days in a year. Round to the nearest cent. $5000; discount rate 9%; length of loan 3 months

A) $112.50

B) $4550.00---my answer

C) $4887.50

D) $4925.00

11. Solve the problem. Mark Golden needs $7115.57 to pay for remodeling work. His bank loans money at a discount rate of 13% for 180days Find the face value of a loan so he will have $7115.57.

A) $8040.60---my answer

B) $7603.00

C) $7610.24

D) $7115.57

12. Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise indicated.

R = $7500, i = 10% interest compounded semiannually for 6years

A) $269,378.45

B) $106,550.90

C) $120,788.25

D) $119,378.45---my answer

13. Find the effective rate corresponding to the given nominal rate. Round results to the nearest 0.01 percentage points.

9% compounded monthly

A) 1.81%

B) 9.38%---my answer

C) 9.31%

D) 9.20%

14. Find the interest. Round to the nearest cent.

$630 at 5.2% for 2 months

A) Interest = $16.38

B) Interest = $546.00

C) Interest = $65.52

D) Interest = $5.46---my answer

15. Find the value. S-|

20|0.02

A) 25.783

B) 24.297

C) 74.297

D) 22.841

16. Solve the problem. Novelties-and-Such borrowed $6700 for 75days and paid $213.39 in interest. Find the rate of interest on the loan.

A) 16.0%

B) 15.7%

C) 15.5%---my answer

D) 15.0%

17. Find the indicated term of the geometric sequence.

a = 1/3, r = 1/2; Find the 8th term.

A) 1/128

B) 1/768

C) 1/384---my answer

D) 1/48

18. Find the future value of the annuity due.

$1500 deposited at the beginning of each year for 12 years at 9% compounded annually

A) $32,930.08---my answer

B) $45,377.75

C) $28,711.08

D) $24,840.44

19. Find the compound interest earned by the deposit. Round to the nearest cent.

$15,000 at 4% compounded quarterly for 1/2year

A) $1224.00

B) $301.50

C) $1200.00

D) $297.06---my answer

20. Find the actual interest rate paid, to the nearest tenth, on the simple discount note.

$1000; discount rate 7.8%; length of loan 6 mo

A) 10.1%

B) 9.1%

C) 7.1%

D) 8.1%---my answer

21. Find the exact interest. Use 365 days in a year, and use the exact number of days in a month. Round to the nearest cent, if necessary.

A loan of $76,000 at 11% made on Feb 29 and due on June 30

A) $2879.56

B) $2771.40---my answer

C) $2840.11

D) $2809.89

22. Find the value. S-|

21|0.038

A) 31.276

B) 29.168

C) 33.465

D) 57.592

23. Find the indicated term of the geometric sequence.

a = 3, r = 2; Find the 5th term.

A)

B) 1296

C) 16

D) 48---my answer

24. Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period.

$90,000; money earns 7% compounded semiannually for 16 1/2years.

A) $1569.74

B) $1012.23

C) $1418.37

D) $1491.52

25. Find the present value of the ordinary annuity.

Payments of $510 made annually for 13years at 6% compounded annually

A) $4514.88---possible answer??

B) $4740.45

C) $4275.74 my answer= $4868.98???

D) $4513.25

#### Solution Preview

1. B (Your answer is not correct)

The interest is $1080 * 11.5% * 80 / 365 = $27.22

2. D

3. B (Your answer is not correct)

The compound interest is $11,000 * (1 + 11%)^16 - $11,000 = $47,419.84

4. B (Your answer is not correct)

The sum of the first five terms is a * (r^5 - 1) / (r - 1) = ((-3)^5 ...