QUESTION

# QUESTION 1 Solve the problem. Round to the nearest cent. A small company borrows at compounded monthly. The loan is due in How much interest will the...

QUESTION 1

1. Solve the problem. Round to the nearest cent.
2. A small company borrows   at   compounded monthly. The loan is due in   How much interest will the company pay?
3. \$117,605.05
4. \$115,913.49
5. \$115,549.55
6. \$207,605.05

1.00000 points

QUESTION 2
1. Find the APY corresponding to the given nominal rates.
2. 4.5% compounded quarterly
3. 4.59%
4. 4.5%
5. 4.55%
6. 4.58%

1.00000 points

QUESTION 3
1. Find the compound interest earned by the deposit. Round to the nearest cent.
2. \$16,000 at 3% compounded annually for 13 years
3. \$6240.00
4. \$7496.54
5. \$6812.17
6. \$5760.00

1.00000 points

QUESTION 4
1. Find the amount that should be invested now to accumulate the following amount, if the money is compounded as indicated.
2. \$2400 at 6% compounded annually for 7 yr
3. \$1691.91
4. \$803.86
5. \$1596.14
6. \$3608.71

1.00000 points

QUESTION 5
1. Solve the problem.
2. A bank gives you two options to choose from for your investments:
3.  Option A: 6% annual interest rate compounded yearly; and
4.  Option B: 5.9% annual interest rate compounded quarterly.
5. Decide which is the better investment at the end of 2 years.
6. Option A
7. Option B

1.00000 points

QUESTION 6
1. Find the interest rate (with annual compounding) that makes the statement true. Round to the nearest tenth when necessary.
2. \$10,000 grows to \$10,816.00 in 2 years
3. 4.25%
4. 2%
5. 4%
6. 2.5%

1.00000 points

QUESTION 7
1. Find the compound amount for the deposit. Round to the nearest cent.
2. \$1000 at 8% compounded annually for 8 years
3. \$1640.00
4. \$1850.93
5. \$1560.00
6. \$1713.82

1.00000 points

QUESTION 8
1. Solve the problem.
2. Find the face value (to the nearest thousand dollars) of the 10-year zero-coupon bond at 3.6% (compounded semiannually) with a price of \$17,498.
3. \$15,800
4. \$25,000
5. \$15,000
6. \$25,500

1.00000 points

QUESTION 9
1. Find the compound amount and the interest earned when the given investment has continuous compounding.
2. \$11,000 at 2.3% for 8 years
3. \$13,529.81; \$2529.81
4. \$13,222.17; \$2222.17
5. \$11,255.93; \$255.93
6. \$13,024.00; \$2024.00

1.00000 points

QUESTION 10
1. Solve the problem.
2. \$1334 is deposited into a savings account at 8% interest, compounded quarterly. To the nearest year, how long will it take for the account balance to reach \$1,000,000?
3. 117 years
4. 75 years
5. 84 years
6. 58 years