Name________________________________ UDC – Quantitative Reasoning I EXAMINATION 3 – Personal Finance – Exponential Functions Fall - 2012 Instructions: This exam is worth 100 points. Read each question carefully. Answer each question clearly and concisely. Please, show All of Your Work. Remember, I do not believe in magic!!!

A) B) Answer C) D)

1. What is the simple interest for a principal of $620 invested at a rate of 7% for 3 years? $173.60 $130.20 $172.60 $129.20

A) B) C) Answer D) E)

2. If you borrow $1100 for 5 years at 14% annual simple interest, how much must you repay at the end of the 5 years? $770.00 $2215.13 $2117.96 $77,000 $1870.00

A)Answer B) C) D)

3. How much interest is earned in 5 years on $2,900 deposited in an account paying 7.1% interest, compounded quarterly? $1,223.07 $1,186.44 $266.68 $1,029.50

A)Answer B) C) D) E)

4. Suppose Emily Yu deposited $1300 in an account that earned simple interest at an annual rate of 8% and left it there for 4 years. At the end of the 4 years, Emily deposited the entire amount from that account into a new account that earned 8% compounded quarterly. She left the money in this account for 4 years. How much did she have after the 8 years? $2355.70 $2427.96 $3233.87 $2457.65 $4850.81

A) B) C) Answer D)

5. If $1,390 is invested in an account which earns 9% interest compounded annually, which will be the balance of the account at the end of 14 years? $11,106,193 $3141 $4645 $21,211

A) B) C) Answer D)

6. Susan bought a 6-month $1100 certificate of deposit. At the end of 6 months, she received $99 simple interest. Find the annual rate of simple interest paid. 18% 16% 15.0% 9%

A) B) Answer C)

7. What lump sum should be deposited in an account that will earn at an annual rate of 8%, compounded quarterly, to grow to $140,000 for retirement in 15 years? $137,052.73 $42,335.45 $24,137.93

...COMPOUNDINTEREST
Making or Spending Money
SIMPLE INTEREST FORMULA
If a principal of P dollars is borrowed for a
period of t years at a per annum interest rate
r, expressed as a decimal, then interest I
charged is
I Pr t
This interest is not used very often. Interest is
usually compounded which means interest
is charged or given on the interest and the...

...*CompoundInterest/Discount*
CompoundInterest
When you borrow money from a bank, you pay interest. Interest is really a fee charged for borrowing the money, it is a percentage charged on the principle amount for a period of a year - usually.
If you want to know how much interest you will earn on your investment or if you want to know how much you will pay above the cost of the principal...

...Chapter 5, 6 Review
1. You invested $1,650 in an account that pays 5 percent simple interest. How much more could you have earned over a 20-year period if the interest had compounded annually?
A. $849.22
B. $930.11
C. $982.19
D. $1,021.15
E. $1,077.94
2. Today, you earn a salary of $36,000. What will be your annual salary twelve years from now if you earn annual raises of 3.6 percent?
A. $55,032.54
B. $57,414.06
C. $58,235.24
D. $59,122.08...

...with a 2% interest rate, or in a five year certificate of deposit with and interest rate of 4.5%. Calculate how much interest you would earn with each option over five years time with continuous compounding.
I’m going to do this for my checking and savings account amount
Checking Account
A = Ce^RT My total money in the checking account is 2100 dollars Since the formula for the continuous compounding is A=Ce^RT where C is the initial deposit or...

...Continuously Compounded Interest
Mathematics: MATH650 section 02
Wendy Forbes
April 27, 2010
We often hear people say that we should let our money work for us.
Using money or capital for income or profit is called an investment.
An accountant manages a company’s money. Then, managers or company investors review their reports to find out the financial status. The demand for accountants increases as more private companies are established. In addition, there are...

...Compoundinterest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. This addition of interest to the principal is called compounding. A bank account, for example, may have its interest compounded every year: in this case, an account with $1000 initial principal and 20% interest per year would have a balance of $1200...

...students actually admitted this year.
4. a) Solve the system of equations:
b) If you graph both of these lines, what does the answer you found represent?
c) Graph both lines and verify your answer graphically.
5. The following equations represent lines that are a) parallel b) intersecting c) are the same line. Circle the correct answer.
3x-6y = 7
9x-18y=20
6. It turns out that $1 CAN is worth 0. 63 euros. When I go to...

...13.1 CompoundInterest
• Simple interest – interest is paid only on the
principal
• Compoundinterest – interest is paid on both
principal and interest, compounded at regular
intervals
• Example: a $1000 principal paying 10% simple
interest after 3 years pays .1 3 $1000 = $300
If interest is compounded annually, it pays .1
$1000 = $100 the first...

2524 Words |
48 Pages

Share this Document

{"hostname":"studymode.com","essaysImgCdnUrl":"\/\/images-study.netdna-ssl.com\/pi\/","useDefaultThumbs":true,"defaultThumbImgs":["\/\/stm-study.netdna-ssl.com\/stm\/images\/placeholders\/default_paper_1.png","\/\/stm-study.netdna-ssl.com\/stm\/images\/placeholders\/default_paper_2.png","\/\/stm-study.netdna-ssl.com\/stm\/images\/placeholders\/default_paper_3.png","\/\/stm-study.netdna-ssl.com\/stm\/images\/placeholders\/default_paper_4.png","\/\/stm-study.netdna-ssl.com\/stm\/images\/placeholders\/default_paper_5.png"],"thumb_default_size":"160x220","thumb_ac_size":"80x110","isPayOrJoin":false,"essayUpload":false,"site_id":1,"autoComplete":false,"isPremiumCountry":false,"userCountryCode":"US","logPixelPath":"\/\/www.smhpix.com\/pixel.gif","tracking_url":"\/\/www.smhpix.com\/pixel.gif","cookies":{"unlimitedBanner":"off"},"essay":{"essayId":37362298,"categoryName":"Periodicals","categoryParentId":"17","currentPage":1,"format":"text","pageMeta":{"text":{"startPage":1,"endPage":3,"pageRange":"1-3","totalPages":3}},"access":"premium","title":"Compound Interest and Answer","additionalIds":[3,52,9,7],"additional":["Business \u0026 Economy","Business \u0026 Economy\/Organizations","Entertainment","Education"],"loadedPages":{"html":[],"text":[1,2,3]}},"user":null,"canonicalUrl":"http:\/\/www.studymode.com\/essays\/Compound-Interest-And-Answer-1528034.html","pagesPerLoad":50,"userType":"member_guest","ct":10,"ndocs":"1,500,000","pdocs":"6,000","cc":"10_PERCENT_1MO_AND_6MO","signUpUrl":"https:\/\/www.studymode.com\/signup\/","joinUrl":"https:\/\/www.studymode.com\/join","payPlanUrl":"\/checkout\/pay","upgradeUrl":"\/checkout\/upgrade","freeTrialUrl":"https:\/\/www.studymode.com\/signup\/?redirectUrl=https%3A%2F%2Fwww.studymode.com%2Fcheckout%2Fpay%2Ffree-trial\u0026bypassPaymentPage=1","showModal":"get-access","showModalUrl":"https:\/\/www.studymode.com\/signup\/?redirectUrl=https%3A%2F%2Fwww.studymode.com%2Fjoin","joinFreeUrl":"\/essays\/?newuser=1","siteId":1,"facebook":{"clientId":"306058689489023","version":"v2.8","language":"en_US"},"analytics":{"googleId":"UA-32718321-1"}}