Use the average daily balance method to compute the amount of interest that will be charged at the end of the billing
cycle. Use a 365–day year.
64)
Month: April (30 days)
Previous month’s balance: $960
Interest rate: 22%
Date Transaction
April 3 purchase of $104
April 12 made payment of $370
April 21 purchase of $90
April 29 made payment of $68
64)
A)
$17.93
B)
$11.99
C)
$14.47
D)
$15.34
Solve the problem. Round to the nearest cent.
65)
Larry wants to start an IRA that will have $730,000 in it when he retires in 30 years. How much
should he invest semiannually in his IRA to do this if the interest is 9% compounded semiannually?
65)
A)
$11,965.83
B)
$3512.31
C)
$2521.61
D)
$2508.61
Use the future value formula to find the indicated value. Round to three decimal places.
66)
n =14; i =0.06; PMT = $1; FV = ?
66)
A)
$37.682
B)
$18.882
C)
$23.276
D)
$21.015
Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise indicated.
67)
PMT = $7,500, i =4% interest compounded semiannually for 9 years
67)
A)
$150,090.53
B)
$256,606.70
C)
$160,592.34
D)
$535,592.34
Solve the problem. Assume that the minimum payment on a credit card is the greater of $20 or 2% of the unpaid balance.
68)
Find the minimum payment on an unpaid balance of $1414.14.
68)
A)
$20.00
B)
$33.28
C)
$282.83
D)
$28.28
Make the indicated conversion. Assume a 360–day year as needed.
69)
8 months to simplified fraction of a year
69)
A)
8
12
B)
1
45
C)
2
3
D)
66
100
Solve the problem. Round to the nearest cent as needed.
70)
Cara knows that she will need to buy a new car in 3 years. The car will cost $15,000 by then. How
much should she invest now at 12%, compounded quarterly, so that she will have enough to buy a
new car?
70)
A)
$12.594.29
B)
$9532.77
C)
$10,520.70
D)
$11,957.91
Solve the problem.
71)
Jennifer invested $4000 in her savings account for 4 years. When she withdrew it, she had
$5271.39. Interest was compounded continuously. What was the interest rate on the account?
Round to the nearest tenth of a percent.
71)
A)
7%
B)
6.8%
C)
6.9%
D)
7.05%
Solve the problem. Assume no new purchases are made with the credit card.
72)
The annual interest rate on a credit card is 19.99%. If a payment of $100.00 is made each month,
how long will it take to pay off an unpaid balance of $1864.59?
72)
A)
25 months
B)
17 months
C)
22 months
D)
23 months
Use the average daily balance method to compute the amount of interest that will be charged at the end of the billing
cycle. Use a 365–day year.
73)
Month: May (31 days)
Previous month’s balance: $950
Interest rate: 19%
Date Transaction
May 3 made payment of $360
May 12 purchase of $105
May 21 purchase of $86
May 29 made payment of $69
73)
A)
$7.93
B)
$12.40
C)
$11.37
D)
$8.82
Use an amortization table to solve the problem. Round to the nearest cent.
74)
The monthly payments on a $76,000 loan at 12% annual interest are $836.76. How much of the first
monthly payment will go toward interest?
74)
A)
$760.00
B)
$736.35
C)
$912.00
D)
$100.41
Convert the given interest rate to decimal form if it is given as a percentage, and to a percentage if it is given in decimal
form.
75)
0.25 to percent
75)
A)
2.25%
B)
0.0025%
C)
2.5%
D)
25%
Solve for the missing value. Round to four decimal places.
76)
n = 30; i = 0.03; PMT = $100; PV = ?
76)
A)
$1918.1585
B)
$2000.0441
C)
$4706.6287
D)
$1960.0441
Use the average daily balance method to compute the amount of interest that will be charged at the end of the billing
cycle. Use a 365–day year.
77)
Month: July (31 days)
Previous month’s balance: $780
Interest rate: 20%
Date Transaction
July 5 made payment of $210
July 15 purchase of $44
July 20 purchase of $92
July 27 purchase of $69
77)
A)
$11.35
B)
$9.78
C)
$9.64
D)
$10.00
Find the payment necessary to amortize the loan.
78)
$2200; 12% compounded quarterly; 8 quarterly payments
78)
A)
$313.64
B)
$442.87
C)
$313.40
D)
$282.23
Find the monthly house payment necessary to amortize the following loan.
79)
In order to purchase a home, a family borrows $70,000 at 12% for 15 years. What is the monthly
payment?
79)
A)
$46.67
B)
$902.99
C)
$840.12
D)
$700.00
Solve the problem. Round to the nearest cent as needed.
80)
The monthly payments on a $79,000 loan at 14% annual interest are $982.76. How much of the first
monthly payment will go toward interest?
80)
A)
$1106.00
B)
$845.17
C)
$921.67
D)
$137.59
Find the compound interest earned. Round to the nearest cent.
81)
$600 at 5% compounded quarterly for 1 1
2 years
81)
A)
$95.82
B)
$46.43
C)
$95.45
D)
$204.06
Solve the problem.
82)
The State Employees’ Credit Union offers a 1–year certificate of deposit with an APY (or effective
rate) of 5.5%. If interest is compounded quarterly, find the actual interest rate. Round to the nearest
tenth of a percent.
82)
A)
5.6%
B)
5.1%
C)
5.4%
D)
6.4%
Solve the problem. Assume that the minimum payment on a credit card is the greater of $20 or 2% of the unpaid balance.
83)
If the annual interest rate is 21.99%, find the difference between the minimum payment and the
interest owed on an unpaid balance of $813.52 that is 1 month overdue.
83)
A)
$3.36
B)
$1.36
C)
$3.09
D)
$5.09
Solve the problem. Assume that simple interest is being calculated in each case. Round your answer to the nearest cent.
84)
John Lee’s savings account has a balance of $4705. After 18 months, what will the amount of
interest be at 5.7% per year?
84)
A)
$402.28
B)
$268.19
C)
$261.39
D)
$286.19
Use the future value formula to find the indicated value. Round to three decimal places.
85)
n = 13; i = 0.04; PMT = $1000; FV = ?
85)
A)
$15,026.247
B)
$18,292.371
C)
$41,627.144
D)
$16,627.838
Find the compound amount for the deposit. Round to the nearest cent.
86)
$600 at 5% compounded quarterly for 6 years
86)
A)
$804.06
B)
$780.00
C)
$808.41
D)
$646.43
Find the rate of interest required to achieve the conditions set forth.
87)
A = $32,000
P = $8,000
t = 20 years
compounded annually
87)
A)
8%
B)
5.6467%
C)
7.1773%
D)
3.5265%
What is the annual percentage yield (APY) for money invested at the given annual rate? Round results to the nearest
hundredth of a percent.
88)
6% compounded quarterly
88)
A)
6.00%
B)
6.09%
C)
6.18%
D)
6.14%
Find the present value of the ordinary annuity.
89)
Payments of $78 made quarterly for 10 years at 8% compounded quarterly
89)
A)
$2098.40
B)
$2133.73
C)
$765.81
D)
$2147.77
Use I = Prt for simple interest to find the indicated quantity.
90)
I = $750; r = 6%; t = 6 months. Find P.
90)
A)
$25,000
B)
$22.50
C)
$25,750
D)
$24,250
Solve the problem. Round dollar amounts to the nearest cent. Use 360 days.
91)
HarbourTown Marina purchased four boat lifts for raising and lowering large boats into the water.
The boat lifts cost $61,300 each. They borrowed the money from the bank for 240 days at 10%. Find
the maturity value.
91)
A)
$67,430.00
B)
$65,386.67
C)
$269,720.00
D)
$261,546.67
Find the periodic payment that will render the sum.
92)
FV = $29,000, interest is 8% compounded monthly, payments made at the end of each month for 3
years
92)
A)
$2329.33
B)
$8585.06
C)
$1528.16
D)
$715.42
Find i (the rate per period) and n (the number of periods) for the loan at the given annual rate.
93)
Quarterly Payments of $3000 are made for 4 years to repay a loan at 10.2% compounded quarterly.
93)
A)
i = 0.102; n = 16
B)
i = 0.0255; n = 16
C)
i = 0.0255; n = 4
D)
i = 0.006375; n = 4
Solve the problem. Round to the nearest cent as needed.
94)
How long will it take for $8400 to grow to $14,600 at an interest rate of 9.4% if the interest is
compounded continuously? Round the number of years to the nearest hundredth.
94)
A)
0.06 year
B)
0.59 year
C)
5.88 years
D)
58.81 years
What is the annual percentage yield (APY) for money invested at the given annual rate? Round results to the nearest
hundredth of a percent.
95)
5% compounded semiannually
95)
A)
5.13%
B)
5.09%
C)
5.06%
D)
5.00%
Solve the problem. Round to the nearest cent as needed.
96)
A bank has $750,000 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 (contractor or business) and
what is the additional interest earned?
96)
A)
Contractor; $52,500
B)
Business; $54,101.51
C)
Contractor; $1601.51
D)
Business; $1601.51
Solve the problem.
97)
Sammy borrowed $10,000 to purchase a new car at an annual interest rate of 11%. She is to pay it
back in equal monthly payments over a 5–year period. How much total interest will be paid over
the period of the loan? Round to the nearest dollar.
97)
A)
$1435
B)
$3630
C)
$3045
D)
$92
Use the formula A = P(1 +
rt) to find the indicated quantity.
98)
A = $16,400; r = 10%; 90 days. Find P.
98)
A)
$16,810
B)
$16,400
C)
$400.00
D)
$16,000
Answer Key
Testname: C3
21
Answer Key
Testname: C3
Answer Key
Testname: C3