PV 1000 Annual interest Rate 0.09 r 0.0075 n 9 1069.560839

Amount at Maturity: $1,069.56 2. (Annualizing a monthly rate) You credit card statement says that you will be charged 1.05% interest a month on unpaid balances. What is the Effective Annual Rate (EAR) being charged?

r 0.0105 n 12 0.133537297

EAR: 13.35% 3. (FV of annuity due) To finance your newborn daughter’s education you deposit $1,200 a year at the beginning of each of the next 18 years in an account paying 8% annual interest. How much will be in the account at the end of the 18th year?

A 1200 r 0.08 n 18 48535.51589

FV: $48,535.52

4. (Rate of return of an annuity) Paul's Perfect Peugeot says they'll sell you a brand new Italian“Iron Man” motor scooter for $1,699. Financing is available, and the terms are 10% down and payments of $46.57 a month for 40 months. What annual interest rate is Paul charging you?

PV 1529.1 Scooter Cost 1699 n 40 Down Payment 169.9 pmnt 46.57

Rate 1.00% 0.120004684

Annual Interest Rate: 12% 5. (Rate of return of an annuity) You would like to have $1,000,000 40 years from now, but the most you can afford to invest each year is $1,200. What annual rate of return