Find the simple interest on the given loan

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Assigment

Part 1

1. Find the simple interest on the loan. $1200 at 6% for 10 years.

2. Find the total amount due for the simple interest loan. $1100 at 7% for 10 years.

3. Find the interest rate on a loan charging $1026 simple interest on a principal of $4750 after 6 years.

4. Find the term of a loan of $100 at 4.5% if the simple interest is $36.

5. Determine the amount due on the compound interest loan.
$18,000 at 5% for 15 years if the interest is compounded in the following ways.
(a) annually

(b) quarterly

6. Calculate the present value of the compound interest loan.
$24,000 after 7 years at 3% if the interest is compounded in the following ways.
(a) annually

(b) quarterly

7. Find the term of the compound interest loan.
4.9% compounded quarterly to obtain $8100 from a principal of $2000.

8. Use the "rule of 72" to estimate the doubling time (in years) for the interest rate, and then calculate it exactly.
8% compounded annually.

9. Find the effective rate of the compound interest rate or investment.
28% compounded monthly. [Note: This rate is a typical credit card interest rate, often stated as 2.3% per month.]

10. Since 2007, a particular fund returned 13.2% compounded monthly. How much would a $5000 investment in this fund have been worth after 4 years?

11. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the accumulated amount of the annuity.
$3500 annually at 7% for 10 years.

12. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the required payment for the sinking fund.
Monthly deposits earning 5% to accumulate $7000 after 10 years.

13. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the amount of time needed for the sinking fund to reach the given accumulated amount.
$2500 yearly at 7% to accumulate $100,000.

14. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

An individual retirement account, or IRA, earns tax-deferred interest and allows the owner to invest up to $5000 each year. Joe and Jill both will make IRA deposits for 30 years (from age 35 to 65) into stock mutual funds yielding 9.7%. Joe deposits $5000 once each year, while Jill has $96.15 (which is 5000/52) withheld from her weekly paycheck and deposited automatically. How much will each have at age 65?

15. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

How much must you invest each month in a mutual fund yielding 11.5% compounded monthly to become a millionaire in 10 years?

16. Calculate the present value of the annuity.
$17,000 annually at 5% for 10 years.

17. Determine the payment to amortize the debt.
Monthly payments on $160,000 at 5% for 25 years.

18. Determine the payment to amortize the debt.
Quarterly payments on $14,500 at 3.2% for 6 years.

19. Find the unpaid balance on the debt.
After 6 years of monthly payments on $170,000 at 5% for 25 years.

20. The super prize in a contest is $10 million. This prize will be paid out in equal yearly payments over the next 20 years. If the prize money is guaranteed by AAA bonds yielding 4% and is placed into an escrow account when the contest is announced 1 year before the first payment, how much do the contest sponsors have to deposit in the escrow account?

Part 2

1.Find the simple interest on the loan. $1600 at 8% for 10 years.

2. Find the simple interest on the loan. $865 at 6.85% for 5 years 6 months.

3. Find the total amount due for the simple interest loan. $1500 at 6% for 10 years.

4. Find the total amount due for the simple interest loan. $6300 at 5.3% for 4 years 9 months.

5. Find the interest rate on a loan charging $528 simple interest on a principal of $2750 after 6 years.

6. Find the principal of a loan at 5.2% if the simple interest after 5 years 6 months is $2574.

7. Find the term of a loan of $175 at 4.5% if the simple interest is $63.

8. How much should be invested now at 5.5% simple interest if $8103 is needed in 2 years?

9. Determine the amount due on the compound interest loan.
$13,000 at 4% for 15 years if the interest is compounded in the following ways.
(a) annually

(b) quarterly

10. Calculate the present value of the compound interest loan.
$28,000 after 7 years at 5% if the interest is compounded in the following ways.
(a) annually

(b) quarterly

11. Find the term of the compound interest loan.
5.9% compounded quarterly to obtain $8500 from a principal of $2000.
12. Use the "rule of 72" to estimate the doubling time (in years) for the interest rate, and then calculate it exactly.
3% compounded annually.

13. Use the "rule of 72" to estimate the doubling time (in years) for the interest rate, and then calculate it exactly.
7.7% compounded weekly.

14. Find the effective rate of the compound interest rate or investment.
19% compounded monthly. [Note: This rate is a typical credit card interest rate, often stated as 1.6% per month.]

15. Find the effective rate of the compound interest rate or investment.
A $50,000 zero-coupon bond maturing in 8 years and selling now for $42,035.

16. You have just received $115,000 from the estate of a long-lost rich uncle. If you invest all your inheritance in a tax-free bond fund earning 6.2% compounded quarterly, how long do you have to wait to become a millionaire? (Round your answer to two decimal places.)

17. The Second Peoples National Bank offers a long-term certificate of deposit earning 6.93% compounded monthly. Your broker locates a $20,000 zero-coupon bond rated AA by Standard & Poor's for $8965 and maturing in 14 years. Which investment will give the greater rate of return?

The Second Peoples National Bank offers a better rate of return. The zero-coupon bond
offers a better rate of return.

18. You have just won $170,000 from a lottery. If you invest all this amount in a tax-free money market fund earning 6% compounded weekly, how long do you have to wait to become a millionaire?

19. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the accumulated amount of the annuity.
$5500 annually at 6% for 10 years.

20. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the accumulated amount of the annuity.
$2000 monthly at 5.8% for 20 years.

21. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the required payment for the sinking fund.
Monthly deposits earning 4% to accumulate $3000 after 10 years.

22. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the required payment for the sinking fund.
Yearly deposits earning 12.9% to accumulate $9500 after 12 years.

23. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the amount of time needed for the sinking fund to reach the given accumulated amount.
$225 monthly at 5.6% to accumulate $25,000.

24. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

An individual retirement account, or IRA, earns tax-deferred interest and allows the owner to invest up to $5000 each year. Joe and Jill both will make IRA deposits for 30 years (from age 35 to 65) into stock mutual funds yielding 9.2%. Joe deposits $5000 once each year, while Jill has $96.15 (which is 5000/52) withheld from her weekly paycheck and deposited automatically. How much will each have at age 65?

25. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

How much must you invest each month in a mutual fund yielding 13.8% compounded monthly to become a millionaire in 10 years?

26. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

The Oseola McCarty Scholarship Fund at the University of Southern Mississippi was established by a $140,000 gift from an 87-year-old woman who had dropped out of sixth grade and worked for most of her life as a washerwoman. How much would she have had to save each week in a bank account earning 3.9% compounded weekly to have $140,000 after 75 years?

27. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

You and your new spouse each bring home $1400 each month after taxes and other payroll deductions. By living frugally, you intend to live on just one paycheck and save the other in a mutual fund yielding 7.96% compounded monthly. How long will it take to have enough for a 20% down payment on a $155,000 condo in the city? (Round your answer to two decimal places.)

28. Calculate the present value of the annuity.
$1200 monthly at 6.3% for 30 years.

29. Determine the payment to amortize the debt.
Monthly payments on $120,000 at 4% for 25 years.

30. Determine the payment to amortize the debt.
Quarterly payments on $18,500 at 3.7% for 6 years.

31. Find the unpaid balance on the debt.
After 6 years of monthly payments on $140,000 at 3% for 25 years.

32. The super prize in a contest is $10 million. This prize will be paid out in equal yearly payments over the next 25 years. If the prize money is guaranteed by AAA bonds yielding 6% and is placed into an escrow account when the contest is announced 1 year before the first payment, how much do the contest sponsors have to deposit in the escrow account?

33. Just before his first attempt at bungee jumping, John decides to buy a life insurance policy. His annual income at age 30 is $35,000, so he figures he should get enough insurance to provide his wife and new baby with that amount each year for the next 35 years. If the long-term interest rate is 6.8%, what is the present value of John's future annual earnings?

Rounding up to the next $50,000, how much life insurance should he buy?

34. A MasterCard statement shows a balance of $560 at 13.8% compounded monthly. What monthly payment will pay off this debt in 1 year 9 months?

Part 3

Unit 1: Discussion Board Problems

FINITE Analysis

2.1 Simple Interest

Find the interest rate on a simple interest loan charging $2,160 interest on a principal loan of $6000 over 6 years.Discuss the effects of doubling the term of the loan while keeping the interest payments to same of a simple interest loan?

PRIN OF FIN

Follow this link to the following web page:

Finance Jobs Guide - Careers in Finance

Review the page thoroughly and begin to think about and explore what options may be available to you in the world of Corporate Finance. Respond to the forum by telling everyone: Which of the jobs and career areas in finance seems most interesting to you and why? What specifically about the position and its responsibilities interests you? Why do you feel the job fits with your career interests, aspirations and skill set?

Also, review the hyper-links for "recommended books on jobs in Finance" (mid way down the page). Based on your review of each, which book do you think would serve you as an interesting resource to assist in your job search and tell us why please?

Reference no: EM131550229

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