Exam 3: Additional Derivative Topics

What is the annual percentage yield (APY) for money invested at the given annual rate? Round results to the nearest hundredth of a percent. -6% compounded quarterly

Provide an appropriate response. -How much should you invest now at 6% compounded semiannually to have $8,500 to buy a car in 2.5 years?

Find i (the rate per period) and n (the number of periods) for the loan at the given annual rate. -Quarterly Payments of $3000 are made for 4 years to repay a loan at 10.2% compounded quarterly.

Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise indicated. -PMT = $7,500, i = 3% interest compounded semiannually for 3 years

Solve the problem. -At the end of every 3 months, Judy deposits $100 into an account that pays 6% compounded quarterly. After 4 years, she puts the accumulated amount into a certificate of deposit paying 7.5% compounded semiannually for 1 year. When this certificate matures, how much will Judy have accumulated?

Solve the problem. -You deposit $130 each month into a savings account that pays 5.5% compounded monthly. How much interest will you have earned after 8 years?

Solve the problem. Round to the nearest cent as needed. -Cheraw Auto Repair believes that it will need new equipment in 10 years. The equipment will cost $26,000. What lump sum should be invested today at 8% compounded semiannually, to yield $26,000?

Find the compound interest earned. Round to the nearest cent. -$14,000 at 5% compounded annually for 3 years

Solve the problem. Round to the nearest cent as needed. -You have decided to buy a new stereo system for $2,500 and agreed to pay in 30 equal quarterly payments at 1.25% interest per quarter on the unpaid balance. How much are your payments?

Provide an appropriate response. -A bank account starts with $1,000 in it. Interest is paid at 6% annual interest, compounded monthly. Graph the exact function for the amount in the account over the first 12 months. Use vertical scale [900, 1,200].

Convert the given interest rate to decimal form if it is given as a percentage, and to a percentage if it is given in decimal form. -0.05% to decimal

Provide an appropriate response. -An investor purchased 500 shares of a stock at $19 per share. The commission she paid to buy the stock was $65 plus 0.3% of the principal amount. Six months later she sold the stock for $20.50 per share. If she paid the same rate of commission to sell the stock, what annual rate of interest (annual yield) did she earn on her initial investment (including purchase price plus commission)? Express your answer as a percentage, correct to one decimal place.

Solve the problem. -The State Employees' Credit Union offers a 1-year certificate of deposit with an APY (or effective rate) of 5.5%. If interest is compounded quarterly, find the actual interest rate. Round to the nearest tenth of a percent.

Use I = Prt for simple interest to find the indicated quantity. -P = $3000; t = 90 days; I = $105. Find r. (Use 360 days in a year.)

Find the rate of interest required to achieve the conditions set forth. -A = $32,000 P = $8,000 T = 20 years Compounded quarterly

Find the compound amount for the deposit. Round to the nearest cent. -$600 at 8% compounded quarterly for 5 years

Solve the problem. Round dollar amounts to the nearest cent. Use 360 days. -Polson Associates bought a new computer system. To pay for the system, they borrowed $41,950 from the bank at t interest for 130 days. Find the simple interest.

Solve the problem. -An ordinary annuity has a value of $1,333.85 at the end of 4 years when $150 is deposited every 6 months into an account earning 6% compounded semiannually. How much interest has been earned?

Solve the problem. -What is the future value of an ordinary annuity at the end of 3 years if $200 is deposited each quarter into an account earning 6% compounded quarterly?

Solve the problem. Round to the nearest cent as needed. -The bacteria in a 11-liter container double every 2 minutes. After 53 minutes the container is full. How long did it take to fill a quarter of the container?