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Problem 1: Every year you deposit $1,400 into an account that earns 2% interest per year. What will be the balance of your account immediately after the 40th deposit?
A. $86,254
B. $71,851
C. $40,759
D. $56,000
E. $84,563
Problem 2: A manufacturing company leases a building for $90.000 per year for its manufacturing facilties. In addition, the machinery in this building is being paid for in installments of $18.000 per year. Each unit of the product costs $14 in labour and $9 in materials. The product can be sold for $40.
How many units per year must be sold for the company to breakeven?
A. 8,894
B. 6,353
C. 7,624
D. 3,812
E. 10,165
Problem 3: Which of the following definition is FALSE for simple interest rate?
a. It is charged only on the principal amount
b. It includes interest of interest
c. Total interest earned is a linear function of time (period)
d. It does not involve compounding of interest
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