1. Section 5.1, # 26 - 28.
2. Section 5.2 # 19, 20.
3. Section 5.3 # 1 - 6, 15 - 18, 21.
4. Section 5.4 # 6, 7, 10, 12, 13, 16, 17, 18, 20, 21, 22, 26, 35, 36.
5. Calculate the maximum possible amount of compound interest that can be earned over a four year period with 5% A.P.R. As a hint, begin with an arbitrary principal, P. Express your final answer as a percentage rounded to 2 decimals.
6. Mr. A owes Ms. B three sums of money: $1,000 due in two years, $1,500 due in five years and $2,000 due in eight years. Mr. A pays Ms. B $2,000 now and the rest in three years.Interest is 6% A.P.R. Find to the amount of the remaining payment to the nearest dollar.
7. Assume a retirement account starts with no money in it and always pays 6% A.P.R compounding monthly. On your 25th birthday, you make a $1,000 dollar deposit into the account. At the end of the first month after your 25th birthday, and continuing at the end of every month until your 40th birthday, you deposit $150 in the same account. After this last payment, no further payments or with drawls are made from the account until you reach your 65th birthday. How much money to the nearest dollar would be in the retirement account at this time?
8. Suppose you have two empty accounts, A1 and A2, that each pay 8% A.P.R. You put $100,000 into A1 now. One year from now, you start making annual deposits into A2 of $10,000 at the beginning of each year (thus, the first payment made at the beginning of one year from now means that the first payment is actually made at the end of the first year, and so on). After how many full years will the amount in A2 become greater than that in A1? Comment on the solution same problem if the annual payments into A2 are $7,000 instead of $10,000.