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90. What is the annually compounded rate of interest on an account with an APR of 10% and
monthly compounding?
91. What is the APR on a loan with an effective annual rate of 15.26% and weekly
compounding of interest?
92. What is the effective annual interest rate on a 9% APR automobile loan that has monthly
payments?
93. Other things being equal, the more frequent the compounding period, the:
94. How much interest will be earned in an account into which $1,000 is deposited for one
year with continuous compounding at a 13% rate?
95. What is the present value of $100 to be deposited today into an account paying 8%,
compounded semiannually for 2 years?
96. If a borrower promises to pay you $1,900 nine years from now in return for a loan of
$1,000 today, what effective annual interest rate is being offered if interest is compounded
annually?
97. What is the present value of your trust fund if you have projected that it will provide you
with $50,000 on your 30th birthday (7 years from today) and it earns 10% compounded annually?
98. What is the discount factor for $1 to be received in 5 years at a discount rate of 8%?
99. How much more would you be willing to pay today for an investment offering $10,000 in 4
years rather than in 5 years? Your discount rate is 8%.
100. "Give me $5,000 today and I'll return $10,000 to you in 5 years," offers the investment
broker. To the nearest percent, what annual interest rate is being offered?
101. The APR on a loan must be equal to the effective annual rate when:
102. A car dealer offers payments of $522.59 per month for 48 months on a $25,000 car after
making a $4,000 down payment. What is the loan's APR?
103. A credit card account that charges interest at the rate of 1.25% per month would have an
annually compounded rate of _____ and an APR of ____.
104. Eighteen years from now, 4 years of college are expected to cost $150,000. How much
more must be deposited into an account today to fund this expense if you could only earn 8%
rather than the 11% you had hoped to earn on your savings?
105. Prizes are often not "worth" as much as claimed. Place a value on a prize of $5,000,000
that is to be received in equal payments over 20 years, with the first payment beginning today.
Assume an interest rate of 7%.
