SIMPLE vs COMPOUND INTEREST Isimp. = P * r *t where P - principal amount (the initial amount you borrow or deposit), r - annual rate of interest (as a decimal), t- number of years the amount is deposited or borrowed for. nt I comp. = P * [(1+ - [(1 + ) – 1] where n - number of times the interest is compounded per year. 2. If you take a three-year simple-interest loan of 100 000 CZK at an annual interest rate of 5,5%, what would be the total amount of interest paid? Total number of Principal Time period Total Interest paid Interest rate compounding periods (CZK) (as a decimal) (number of years) (CZK) 100,000 0.055 3 16,500 3. How much interest on interest is earned in an account by the end of 5 years if € 100 000 is deposited and interest is 4% per year, compounded quarterly? Compounding Compound Interest Simple Interest Interest Principal Interest rate Time period Interest per period t Total number of frequency earned on compounding periods (EUR) 20,000.00 (EUR) (as a decimal) (number of years) (times per year) (as a decimal) (EUR) (EUR) 100,000 2,019.00 0.04 5 20 0.0100 22,019.00

The principal P is borrowed at simple interest rate r for a period of time t. Find the​ loan's future​ value, A, or the total amount due at time t. Round answer to the nearest cent.   P=​$900​, r=6​%, t=2 months

The principal P is borrowed and the​ loan's future value A at time t is given. Determine the​ loan's simple interest rate r. P​ = ​$2300​, A​ = ​$2722​, t​ = 6 months.

Using Table 11-2 from your text, calculate the present value (principal) and the compound interest given:       A = Compound Amount = $1,250         t = Term of Investment = 6 years       r = Nominal rate = 6% or 0.06       n = Interest is compounded semiannually = 2

2. Find the present value of $500 due in the future under each of these conditions: a. 12% nominal rate, semiannual compounding, discounted back 5 years b. 12% nominal rate, quarterly compounding, discounted back 5 years c. 12% nominal rate, monthly compounding, discounted back 1 year Hint: identify the interest rate per period and the total number of periods in each scenario first. O

Use the compound interest formula to solve. (Round your answers to the nearest cent.) Principal Time Period(years) NominalRate (%) InterestCompounded CompoundAmount CompoundInterest $400 5 1.5 monthly $   $

15.

Answer the following simple interest problem using the provided formula ONLY. Show your complete solution.    3. Simple Interest Determine the accumulated amount using exact simple interest on P10,000.00 (pesos) for the period from January 20, 1990 to November 28 of the same year at 15% interest rate.

A loan of X is repaid with level payments of R payable at the end of each year for n years. You are given: (i) The interest paid in year 1 is 797.50. (ii) The principal repaid in year n-4 is 865. (iii) The principal outstanding at the end of year n-1 is 1,144.50. Determine X. A B с D E 9,500 10,000 10,500 11,000 11,500

Find the amount (in $) of interest and the maturity value of the loans. Use the formula  MV = P + I  to find the maturity value. Principal Rate (%) Time Interest Maturity Value $97,000 8 1 4 4 1 2  years $  $