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