Question 1: Find the simple interest for each loan:
1. $15,903 at 8% for 8 months
2. $42,368 at 5.22% for 5 months
Question 2: For a given amount of money at a given interest rate for a given time period, does simple interest or compound interest produce more interest?
Question 3: Find the compound amount in each loan:
1. $19,456.11 at 12% compounded semi-annually for 7 years
2. $57,809.34 at 12% compounded quarterly for 5 years
Question 4: Find the amount of interest earned by each deposit:
1. $12,699.36 at 10% compounded semi-annually for 7 years
2. $34,677.23 at 9.72% compounded monthly for 32 months
3. $42,000 in 7 years, 12% compounded monthly
4. $1347.89 in 3.5 years, 6.77% compounded semi-annually
Question 5: Geometric Sequence (GP):
1. Find the sixth term of the geometric sequence
2. Find the sum of the first four terms of the geometric sequence
Question 6: Find S 30, 01 [Please refer to the attachment for the correct notation].
Question 7: What is meant by the future value of an annuity?
Question 8: Find the future value of each annuity:
1. $1288 deposited at the end of each year for 14 years; money earns 8% compounded annually
2. $233 deposited at the end of each month for 4 years; money earns 12% compounded monthly
3. $11,900 deposited at the beginning of each month for 13 months; money earns 12% compounded monthly
4. $6500; money earns 8% compounded annually; 6 annual payments
5. $233,188; money earns 9.7% compounded quarterly for years
Question 9: Find the present value of each ordinary annuity:
1. Deposits of $850 annually for 4 years at 8% compounded annually
2. Payments of $4210 semi-annually for 8 years at 8.6% compounded semi-annually
Question 10: Give two examples of the types of loans that are commonly amortized.
Question 11: Find the amount of the payment necessary to amortize each loan.
1. $3200; 8% compounded quarterly; 10 quarterly payments
2. $51,607; 13.6% compounded monthly; 32 monthly payments
Question 12: Find the monthly house payments for each mortgage:
$77,110 at 11.45% for 3 years