You open a credit card account that charges 1.25% interest each month on the unpaid balance. the effective annual interest rate is:

Calculate the simple interest on a 3-year loan for $3,600 at an annual interest rate of 8%.

Joel borrows $60,000 at 7% interest per year for a 10-year period. He can make payments of $450 at the beginning of each month until the loan is closed. He plans on making a balloon payment at the end of the period. What is the expected size of the balloon payment?

Suppose you start saving for retirement when you are 45 years old. You invest $5,200 the first year and increase this amount by 2% each year to match inflation for a total of 15 years. The interest rate is 7% per year. How much money will you have saved when you are 60 years old? Click the icon to view the interest and annuity table for discrete compounding when i = 2% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year. When you are 60 years old, you will have saved $. (Round to the nearest dollar.)