Exam 3: Additional Derivative Topics

Use the formula A = P(1 + rt) to find the indicated quantity. -Allan borrowed $5500 from his father to buy a car. He repaid him after 10 months with interest of 5% per year. Find the total amount he repaid.

Use an amortization table to solve the problem. Round to the nearest cent. -The monthly payments on a $76,000 loan at 12% annual interest are $836.76. How much of the first monthly payment will go toward interest?

What is the annual percentage yield (APY) for money invested at the given annual rate? Round results to the nearest hundredth of a percent. -5% compounded semiannually

Solve the problem. -A couple decides on the following savings plan for their child's college education. When the child is 6 months old, and every 6 months thereafter, they will deposit $310 into a savings account paying 9.5% interest compounded semi-annually. After the child's tenth birthday, having made 20 such payments, they will stop making deposits and let the accumulated money earn interest, at the same rate, for 8 more years, until the child is 18 years old and ready for college. How much money (to the nearest dollar) will be in the account when the child is ready for college?

Find the payment necessary to amortize the loan. -$12,800; 12% compounded monthly; 48 monthly payments

Use an amortization table to solve the problem. Round to the nearest cent. -The monthly payments on a $73,000 loan at 13% annual interest are $807.38. How much of the first monthly payment will go toward the principal?

Solve the problem. Round dollar amounts to the nearest cent. Use 360 days. -HarbourTown Marina purchased four boat lifts for raising and lowering large boats into the water. The boat lifts cost $61,300 each. They borrowed the money from the bank for 240 days at 10%. Find the maturity value.

Use an amortization table to solve the problem. Round to the nearest cent. -A $7,000 debt is to be amortized in 15 equal monthly payments of $504.87 at 1.00% interest per month on the unpaid balance. What is the unpaid balance after the second payment?

Solve the problem. Assume that the minimum payment on a credit card is the greater of $27 or 3% of the unpaid balance. -If the annual interest rate is 15.99%, find the difference between the minimum payment and the interest owed on an unpaid balance of $748.44 that is 1 month overdue.

Solve the problem. Round to the nearest cent. -Joe wants to start an SEP-IRA that will have $460,000 in it when he retires in 15 years. How much should he invest semiannually in his IRA to do this if the interest is 15% compounded semiannually?

Provide an appropriate response. -An investor purchased 150 shares of a stock at $15.80 per share. The investor holds the stock for 39 weeks and then sells the stock for $19.25 per share. Use the commission schedule for this company given below to find the annual rate of interest earned by this investor. Express your answer as a percentage, correct to one decimal place.

Solve the problem. Round to the nearest cent as needed. -Samantha's savings account has a balance of $4643. After 25 years, what will the amount of interest be at 6% compounded annually?

Make the indicated conversion. Assume a 360-day year as needed. -150 days to a simplified fraction of year

Find the monthly house payment necessary to amortize the following loan. -In order to purchase a home, a family borrows $267,000 at 10.8% for 15 yr. What is their monthly payment? Round the answer to the nearest cent.

Solve the problem. Round to the nearest cent as needed. -A child receives a $10,000 gift toward a college education from her grandparents on her first birthday. How much money will it be worth in 17 years if it is invested at 8.25% compounded quarterly? Round your answer to the nearest cent.

Use an amortization table to solve the problem. Round to the nearest cent. -You have purchased a new house and have a mortgage for $90,000 at 6% compounded monthly. The loan is amortized over 20 years in equal monthly payments of $644.79. Find the total amount paid in interest when the mortgage is paid off.

Use the average daily balance method to compute the amount of interest that will be charged at the end of the billing cycle. Use a 365-day year. -Month: February (28 days) Previous month's balance: $1240 Interest rate: 22%

Make the indicated conversion. Assume a 360-day year as needed. -8 months to simplified fraction of a year

Solve the problem. -Sammy borrowed $10,000 to purchase a new car at an annual interest rate of 11%. She is to pay it back in equal monthly payments over a 5-year period. How much total interest will be paid over the period of the loan? Round to the nearest dollar.

Solve the problem. Round to the nearest cent as needed. -Brandon's savings account has a balance of $4069. After 4 years what will the amount of interest be at 5% compounded quarterly?