week in review.pdf

Math 140 Week-in-Review MATH 140: Week-In-Review 12 (6.1 & 6.2) Problem 1 Five years ago a deposit of $ 200 was made into an account paying simple interest at a rate of 4.75% per year. Assuming no additional deposits or withdrawals were made, how much total interest has been earned on the account? How much money is in the account now? Problem 2 An account pays simple interest with a $ 3500 deposit earning $ 500 in interest after 3 years. What is the annual interest rate on the account? Copyright © 2023 Kathryn Bollinger Page 1 of 20

Math 140 Week-in-Review Problem 3 How much money was initially deposited into an account paying simple interest at a rate of 3.5% per year, if after 20 years the account has a total of $ 5000 and no additional money was deposited or withdrawn? Problem 4 After how much time will a deposit of $ 1000 grow to a total of $ 1800, if simple interest is paid at a rate of 2% per month and no additional money is deposited or withdrawn? Copyright © 2023 Kathryn Bollinger Page 2 of 20

Math 140 Week-in-Review Problem 5 A bank deposit earning simple interest grew from an initial amount of $ 2000 to $ 2150 in 7 months. Find the annual interest rate on the account (correct to 4 decimal places). Problem 6 How much money will be in an account after 2 years on a $ 500 deposit that earns interest at a rate of 5% per year, compounded continuously? How much total interest will be earned? Copyright © 2023 Kathryn Bollinger Page 3 of 20

Math 140 Week-in-Review Problem 7 If Mark invests $ 5000 into an account paying interest at a rate of 8% per year com- pounded semi-annually, how much money will he have at the end of 6 years (assuming no additional deposits or withdrawals)? Copyright © 2023 Kathryn Bollinger Page 4 of 20

Math 140 Week-in-Review Problem 8 In 18 months Brian needs $ 1750 in order to buy a specific computer. If he finds an account paying interest at a rate of 5.95% per year compounded weekly, how much could he invest now (with no additional deposits) in order to have the money he needs for the computer? Problem 9 Kevin inherits $ 50,000. If he invests it by placing it into an account paying interest at a rate of 10.5% per year compounded monthly, how long would he have to leave his money in the account before it doubles? Copyright © 2023 Kathryn Bollinger Page 5 of 20

Math 140 Week-in-Review Problem 10 What annual interest rate, compounded daily, will quadruple an initial deposit of $ 1200 after 8 years? Problem 11 Susie’s credit card company has a finance charge of 1.5% per month on the outstand- ing indebtedness. Susie charged $ 1000 on her credit card and did not pay her bill for 6 months. What is her bill after the 6 months? Copyright © 2023 Kathryn Bollinger Page 6 of 20

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