Question 1

Find the compound interest earned by the deposit. Round to the nearest cent.
-$\$ 1950$ at $3.7 \%$ compounded annually for 18 years

Accepted Answer

A)  $\$ 1298.70$ 
B)  $\$ 1666.38$ 
C)  $\$ 1226.55$ 
D)  $\$ 1800.18$ 
A)  $\$ 1298.70$ 
B)  $\$ 1666.38$ 
C)  $\$ 1226.55$ 
D)  $\$ 1800.18$ D

Question 2

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.
-$\$ 7220$ at $6.5 \%$ for 130 days

Accepted Answer

A)  $\$ 154.29$ 
B)  $\$ 469.30$ 
C)  $\$ 169.47$ 
D)  $\$ 167.15$ 
A)  $\$ 154.29$ 
B)  $\$ 469.30$ 
C)  $\$ 169.47$ 
D)  $\$ 167.15$ D

Question 3

Solve the problem.
-Novelties-and-Such borrowed $\$ 300$ for 100 days and paid $\$ 2.88$ in interest. Find the rate of interest on the loan. Round to the nearest tenth.

Accepted Answer

A)  $3.0 \%$ 
B)  $3.7 \%$ 
C)  $4.0 \%$ 
D)  $3.5 \%$ 
A)  $3.0 \%$ 
B)  $3.7 \%$ 
C)  $4.0 \%$ 
D)  $3.5 \%$ D

Question 4

Find the present value of the ordinary annuity.
-Payments of $\$ 45,000$ made semiannually for 12 years at $4.2 \%$ compounded semiannually

Accepted Answer

A)  $\$ 834,318.00$ 
B)  $\$ 841,563.18$ 
C)  $\$ 845,253.00$ 
D)  $\$ 758,848.50$ 
A)  $\$ 834,318.00$ 
B)  $\$ 841,563.18$ 
C)  $\$ 845,253.00$ 
D)  $\$ 758,848.50$

Question 5

For the given bond, whose interest rate is provided, find the semiannual interest payment and the total interest earnedover the life of the bond.
-$\$ 2,000$ Max-Mart Stores 5 -year bond at $6.75 \%$

Accepted Answer

A)  $\$ 67.50 ; \$ 675.00$ 
B)  $\$ 60.00 ; \$ 600.00$ 
C)  $\$ 135.00 ; \$ 675.00$ 
D)  $\$ 6750.00 ; \$ 67,500.00$ 
A)  $\$ 67.50 ; \$ 675.00$ 
B)  $\$ 60.00 ; \$ 600.00$ 
C)  $\$ 135.00 ; \$ 675.00$ 
D)  $\$ 6750.00 ; \$ 67,500.00$

Question 6

Solve the problem.
-Find the face value (to the nearest thousand dollars) of the 30 -year zero-coupon bond at $3.7 \%$ (compounded semiannually) with a price of $\$ 19,975$.

Accepted Answer

A)  $\$ 60,000$ 
B)  $\$ 40,800$ 
C)  $\$ 60,500$ 
D)  $\$ 40,000$ 
A)  $\$ 60,000$ 
B)  $\$ 40,800$ 
C)  $\$ 60,500$ 
D)  $\$ 40,000$

Question 7

Find the compound amount for the deposit. Round to the nearest cent.
-$\$ 24,391$ at $8.5 \%$ compounded daily for 5 years

Accepted Answer

A)  $\$ 15,820.25$ 
B)  $\$ 37,306.39$ 
C)  $\$ 16,974.92$ 
D)  $\$ 44,443.30$ 
A)  $\$ 15,820.25$ 
B)  $\$ 37,306.39$ 
C)  $\$ 16,974.92$ 
D)  $\$ 44,443.30$

Question 8

Find the future value of the loan.
-$\$ 6100$ loan at $7.5 \%$ for 9 months

Accepted Answer

A)  $\$ 10,217.50$ 
B)  $\$ 6474.32$ 
C)  $\$ 6443.13$ 
D)  $\$ 6448.13$ 
A)  $\$ 10,217.50$ 
B)  $\$ 6474.32$ 
C)  $\$ 6443.13$ 
D)  $\$ 6448.13$

Question 9

Find the compound amount and the interest earned when the given investment has continuous compounding.
-$\$ 13,000$ at $2.8 \%$ for 3 years

Accepted Answer

A)  $\$ 14,092.00 ; \$ 1092.00$ 
B)  $\$ 14,540.67 ; \$ 1540.67$ 
C)  $\$ 14,139.18 ; \$ 1139.18$ 
D)  $\$ 13,369.14 ; \$ 369.14$ 
A)  $\$ 14,092.00 ; \$ 1092.00$ 
B)  $\$ 14,540.67 ; \$ 1540.67$ 
C)  $\$ 14,139.18 ; \$ 1139.18$ 
D)  $\$ 13,369.14 ; \$ 369.14$

Question 10

Find the payment necessary to amortize the loan.
-$\$ 150,000 ; 8 \%$ compounded annually; 10 annual payments

Accepted Answer

A)  $\$ 22,354.36$ 
B)  $\$ 21,011.35$ 
C)  $\$ 24,011.91$ 
D)  $\$ 22,351.03$ 
A)  $\$ 22,354.36$ 
B)  $\$ 21,011.35$ 
C)  $\$ 24,011.91$ 
D)  $\$ 22,351.03$

Question 11

Solve the problem.
-At the end of every 3 months, Teresa deposits $\$ 100$ into an account that pays $4 \%$ 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 Teresa have accumulated?

Accepted Answer

A)  $\$ 1788.80$ 
B)  $\$ 1857.65$ 
C)  $\$ 1994.36$ 
D)  $\$ 1848.71$ 
A)  $\$ 1788.80$ 
B)  $\$ 1857.65$ 
C)  $\$ 1994.36$ 
D)  $\$ 1848.71$

Question 12

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 $\$ 97,000$ at $5.9 \%$ made on Feb 18 and due on June 30

Accepted Answer

A)  $\$ 2146.13$ 
B)  $\$ 2098.43$ 
C)  $\$ 2069.69$ 
D)  $\$ 2116.73$ 
A)  $\$ 2146.13$ 
B)  $\$ 2098.43$ 
C)  $\$ 2069.69$ 
D)  $\$ 2116.73$

Question 13

Find the present value of the ordinary annuity.
-Pa yments of $\$ 450$ made annually for 13 years at $6 \%$ compounded annually

Accepted Answer

A)  $\$ 3983.72$ 
B)  $\$ 3982.28$ 
C)  $\$ 3772.71$ 
D)  $\$ 4182.75$ 
A)  $\$ 3983.72$ 
B)  $\$ 3982.28$ 
C)  $\$ 3772.71$ 
D)  $\$ 4182.75$

Question 14

Solve the problem.
-Tasha borrowed $\$ 10,000$ to purchase a new car at an anual interest rate of $13 \%$. She is to pay it back in equal monthly payments over a 4 year period. What is her monthly payment?

Accepted Answer

A)  $\$ 268.27$ 
B)  $\$ 309.40$ 
C)  $\$ 108.33$ 
D)  $\$ 27.08$ 
A)  $\$ 268.27$ 
B)  $\$ 309.40$ 
C)  $\$ 108.33$ 
D)  $\$ 27.08$

Question 15

Find the compound interest earned by the deposit. Round to the nearest cent.
-$\$ 4000$ at $4 \%$ compounded quarterly for $\frac{3}{4}$ year

Accepted Answer

A)  $\$ 121.20$ 
B)  $\$ 499.46$ 
C)  $\$ 480.00$ 
D)  $\$ 119.41$ 
A)  $\$ 121.20$ 
B)  $\$ 499.46$ 
C)  $\$ 480.00$ 
D)  $\$ 119.41$

Question 16

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 $\$ 8500$ at $7 \%$ made on July 23 and due on November 30

Accepted Answer

A)  $\$ 209.90$ 
B)  $\$ 211.92$ 
C)  $\$ 207.03$ 
D)  $\$ 214.86$ 
A)  $\$ 209.90$ 
B)  $\$ 211.92$ 
C)  $\$ 207.03$ 
D)  $\$ 214.86$

Question 17

Solve the problem.
-Gretta wants to retire in 13 years. At that time she wants to be able to withdraw $\$ 12,500$ at the end of each 6 months for 13 years. Assume that money can be deposited at $12 \%$ per year compounded semiannually. What exact amount will Gretta need in 13 years?

Accepted Answer

A)  $\$ 162,539.63$ 
B)  $\$ 254,127.13$ 
C)  $\$ 159,792.00$ 
D)  $\$ 165,131.63$ 
A)  $\$ 162,539.63$ 
B)  $\$ 254,127.13$ 
C)  $\$ 159,792.00$ 
D)  $\$ 165,131.63$

Question 18

Find the cash value of the lottery jackpot (to the nearest dollar). Yearly jackpot payments begin immediately (26 forMega Millions and 30 for Powerball). Assume the lottery can invest at the given interest rate.
-Po werball: $\$ 240$ million; $5.2 \%$ interest

Accepted Answer

A)  $\$ 197,215,757$ 
B)  $\$ 126,476,551$ 
C)  $\$ 128,224,858$ 
D)  $\$ 200,255,686$ 
A)  $\$ 197,215,757$ 
B)  $\$ 126,476,551$ 
C)  $\$ 128,224,858$ 
D)  $\$ 200,255,686$

Question 19

Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding periodis the same as the payment period.
-$\$ 45,000$ to be accumulated in 10 years; annual payments of $\$ 3940$. Round to the nearest hundredth.

Accepted Answer

A)  $2.58 \%$ 
B)  $2.77 \%$ 
C)  $2.92 \%$ 
D)  $2.01 \%$ 
A)  $2.58 \%$ 
B)  $2.77 \%$ 
C)  $2.92 \%$ 
D)  $2.01 \%$

Question 20

Use an amortization table to solve the problem. Round to the nearest cent.
-The monthly payments on a $\$ 90,000$ loan at $11 \%$ annual interest are $\$ 1023.30$. How much of the first monthly payment will go toward the principal?

Accepted Answer

A)  $\$ 198.30$ 
B)  $\$ 910.74$ 
C)  $\$ 825.00$ 
D)  $\$ 112.56$ 
A)  $\$ 198.30$ 
B)  $\$ 910.74$ 
C)  $\$ 825.00$ 
D)  $\$ 112.56$

Find the compound interest earned by the deposit. Round to the nearest cent. - $\$ 1950$ at $3.7 \%$ compounded annually for 18 years

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. - $\$ 7220$ at $6.5 \%$ for 130 days

Solve the problem. -Novelties-and-Such borrowed $\$ 300$ for 100 days and paid $\$ 2.88$ in interest. Find the rate of interest on the loan. Round to the nearest tenth.

Find the present value of the ordinary annuity. -Payments of $\$ 45,000$ made semiannually for 12 years at $4.2 \%$ compounded semiannually

For the given bond, whose interest rate is provided, find the semiannual interest payment and the total interest earnedover the life of the bond. - $\$ 2,000$ Max-Mart Stores 5 -year bond at $6.75 \%$

Solve the problem. -Find the face value (to the nearest thousand dollars) of the 30 -year zero-coupon bond at $3.7 \%$ (compounded semiannually) with a price of $\$ 19,975$ .

Find the compound amount for the deposit. Round to the nearest cent. - $\$ 24,391$ at $8.5 \%$ compounded daily for 5 years

Find the future value of the loan. - $\$ 6100$ loan at $7.5 \%$ for 9 months

Find the compound amount and the interest earned when the given investment has continuous compounding. - $\$ 13,000$ at $2.8 \%$ for 3 years

Find the payment necessary to amortize the loan. - $\$ 150,000 ; 8 \%$ compounded annually; 10 annual payments

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 $\$ 97,000$ at $5.9 \%$ made on Feb 18 and due on June 30

Find the present value of the ordinary annuity. -Pa yments of $\$ 450$ made annually for 13 years at $6 \%$ compounded annually

Solve the problem. -Tasha borrowed $\$ 10,000$ to purchase a new car at an anual interest rate of $13 \%$ . She is to pay it back in equal monthly payments over a 4 year period. What is her monthly payment?

Find the compound interest earned by the deposit. Round to the nearest cent. - $\$ 4000$ at $4 \%$ compounded quarterly for $\frac{3}{4}$ year

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 $\$ 8500$ at $7 \%$ made on July 23 and due on November 30

Solve the problem. -Gretta wants to retire in 13 years. At that time she wants to be able to withdraw $\$ 12,500$ at the end of each 6 months for 13 years. Assume that money can be deposited at $12 \%$ per year compounded semiannually. What exact amount will Gretta need in 13 years?

Find the cash value of the lottery jackpot (to the nearest dollar). Yearly jackpot payments begin immediately (26 forMega Millions and 30 for Powerball). Assume the lottery can invest at the given interest rate. -Po werball: $\$ 240$ million; $5.2 \%$ interest

Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding periodis the same as the payment period. - $\$ 45,000$ to be accumulated in 10 years; annual payments of $\$ 3940$ . Round to the nearest hundredth.

Use an amortization table to solve the problem. Round to the nearest cent. -The monthly payments on a $\$ 90,000$ loan at $11 \%$ annual interest are $\$ 1023.30$ . How much of the first monthly payment will go toward the principal?

Algebra and Equations

Graphs, Lines, and Inequalities

Functions and Graphs

Exponential and Logarithmic Functions

Systems of Linear Equations and Matrices

Linear Programming

Sets and Probability

Counting, Probability Distributions, and Further Topics in Probability

Introduction to Statistics

Differential Calculus

Applications of the Derivative

Integral Calculus

Multivariate Calculus

Filters

Exam 5: Mathematics of Finance

Find the compound interest earned by the deposit. Round to the nearest cent. - $1950\$ 1950$1950 at 3.7%3.7 \%3.7% compounded annually for 18 years

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. - $7220\$ 7220$7220 at 6.5%6.5 \%6.5% for 130 days

Solve the problem. -Novelties-and-Such borrowed $300\$ 300$300 for 100 days and paid $2.88\$ 2.88$2.88 in interest. Find the rate of interest on the loan. Round to the nearest tenth.

Find the present value of the ordinary annuity. -Payments of $45,000\$ 45,000$45,000 made semiannually for 12 years at 4.2%4.2 \%4.2% compounded semiannually

For the given bond, whose interest rate is provided, find the semiannual interest payment and the total interest earnedover the life of the bond. - $2,000\$ 2,000$2,000 Max-Mart Stores 5 -year bond at 6.75%6.75 \%6.75%

Solve the problem. -Find the face value (to the nearest thousand dollars) of the 30 -year zero-coupon bond at 3.7%3.7 \%3.7% (compounded semiannually) with a price of $19,975\$ 19,975$19,975 .

Find the compound amount for the deposit. Round to the nearest cent. - $24,391\$ 24,391$24,391 at 8.5%8.5 \%8.5% compounded daily for 5 years

Find the future value of the loan. - $6100\$ 6100$6100 loan at 7.5%7.5 \%7.5% for 9 months

Find the compound amount and the interest earned when the given investment has continuous compounding. - $13,000\$ 13,000$13,000 at 2.8%2.8 \%2.8% for 3 years

Find the payment necessary to amortize the loan. - $150,000;8%\$ 150,000 ; 8 \%$150,000;8% compounded annually; 10 annual payments

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 $97,000\$ 97,000$97,000 at 5.9%5.9 \%5.9% made on Feb 18 and due on June 30

Find the present value of the ordinary annuity. -Pa yments of $450\$ 450$450 made annually for 13 years at 6%6 \%6% compounded annually

Solve the problem. -Tasha borrowed $10,000\$ 10,000$10,000 to purchase a new car at an anual interest rate of 13%13 \%13% . She is to pay it back in equal monthly payments over a 4 year period. What is her monthly payment?

Find the compound interest earned by the deposit. Round to the nearest cent. - $4000\$ 4000$4000 at 4%4 \%4% compounded quarterly for 34\frac{3}{4}43​ year

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 $8500\$ 8500$8500 at 7%7 \%7% made on July 23 and due on November 30

Solve the problem. -Gretta wants to retire in 13 years. At that time she wants to be able to withdraw $12,500\$ 12,500$12,500 at the end of each 6 months for 13 years. Assume that money can be deposited at 12%12 \%12% per year compounded semiannually. What exact amount will Gretta need in 13 years?

Find the cash value of the lottery jackpot (to the nearest dollar). Yearly jackpot payments begin immediately (26 forMega Millions and 30 for Powerball). Assume the lottery can invest at the given interest rate. -Po werball: $240\$ 240$240 million; 5.2%5.2 \%5.2% interest

Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding periodis the same as the payment period. - $45,000\$ 45,000$45,000 to be accumulated in 10 years; annual payments of $3940\$ 3940$3940 . Round to the nearest hundredth.

Use an amortization table to solve the problem. Round to the nearest cent. -The monthly payments on a $90,000\$ 90,000$90,000 loan at 11%11 \%11% annual interest are $1023.30\$ 1023.30$1023.30 . How much of the first monthly payment will go toward the principal?