Use the table to solve the problem. Round to the nearest cent.
28)
Andrea Gilford’s savings account has a balance of $4582. After 4 years, what will the amount of
interest be at 4% compounded quarterly?
28)
A)
$795.76
B)
$781.76
C)
$790.76
D)
$91.64
29)
Barry Newman’s savings account has a balance of $2261. After 22 years, what will the amount of
interest be at 6% compounded annually?
29)
A)
$1356.60
B)
$5877.60
C)
$5891.60
D)
$5886.60
30)
Felipe Rivera‘s savings account has a balance of $782. After 4 years what will the amount of interest
be at 10% compounded quarterly?
30)
A)
$369.89
B)
$378.89
C)
$39.10
D)
$383.89
Solve the application problem. If no interest rate is given, assume 31
2% interest compounded daily. Round to the nearest
cent.
31)
On October 1, The Bakery opened a savings account with a deposit of $17,600. A withdrawal of
$7500 was made 15 days later and another withdrawal of $400 was made 8 days before January 1.
Find the balance on January 1.
31)
A)
$9799.45
B)
$9799.29
C)
$9799.80
D)
$9799.97
Find the interest earned. Assume 3 1
2% interest compounded daily, as in the following table, and use the exact number of
days. Round to the nearest cent.
32)
Amount: $3300
Deposited: Jan 28
Withdrawn: Apr 6
32)
A)
$21.59
B)
$31.95
C)
$32.91
D)
$3321.59
Use the table to solve the problem. Round to the nearest cent.
33)
A bank has $900,000 to lend for 7 months. It can lend it to a local contractor at a simple interest rate
of 12%, or it can lend it to a small business that will pay 12% compounded monthly. If the bank
wants to maximize its interest earned, who should receive the loan and what is the additional
interest earned?
33)
A)
Contractor; $1926.00
B)
Contractor; $43,074.00
C)
Business; $1926.00
D)
Business; $1,026,612.00
Find the compound amount for the certificate of deposit. Assume daily compounding using the following table. Round
to the nearest cent.
34)
Amount: $2700
Rate: 3%
Years: 4
34)
A)
$2782.22
B)
$3044.23
C)
$2924.87
D)
$3136.93
Use values from the compound interest table to find the compound amount. Round to the nearest cent.
35)
$100 at 6% compounded quarterly for 2 years
35)
A)
$103.02
B)
$112.65
C)
$112.00
D)
$112.36
Find the interest earned. Assume 3 1
2% interest compounded daily, as in the following table, and use the exact number of
days. Round to the nearest cent.
36)
Amount: $2700
Deposited: Sept 20
Withdrawn: Nov 3
36)
A)
$2711.42
B)
$11.42
C)
$16.36
D)
$17.53
Find the present value. Round to the nearest cent.
37)
Amount Needed Time (Years) Interest Compounded
$4200 4 6% quarterly
37)
A)
$3309.73
B)
$3326.79
C)
$890.27
D)
$5329.74
Solve the application problem. If no interest rate is given, assume 31
2% interest compounded daily. Round to the nearest
cent.
38)
Kerry and Andy Zell are retired and after saving their entire life, they have $210,000 in a savings
account paying 3% compounded daily. What is their gain or loss in purchasing power in a year in
which the CPI is 6%?
38)
A)
Gain of $6204.82
B)
Loss of $222,600.00
C)
Gain of $222,600.00
D)
Loss of $6204.82
Use the table to solve the problem. Round to the nearest cent.
39)
Lexi can invest $7950 for 3 years at 6% compounded quarterly. Find the future value.
39)
A)
$159,969,900.00
B)
$94,686,090.00
C)
$9381.00
D)
$9505.18
Find the compound amount for the certificate of deposit. Assume daily compounding using the following table. Round
to the nearest cent.
40)
Amount: $8300
Rate: 5%
Years: 5
40)
A)
$9643.13
B)
$10,657.23
C)
$8725.52
D)
$13,683.92
Use values from the compound interest table to find the compound interest. Round to the nearest cent.
41)
$1300 at 8% compounded quarterly for 4 years
41)
A)
$484.63
B)
$416.00
C)
$468.64
D)
$1407.16