Chapter 3
Exercises 3.1
6. S
o
e=300; y
int. =15,000 7. Slo
e=
0; y
nt. =2,000
8. Slo
e=17
; y
int. =5,000 9. 0.062 10. 8.5% 11. 13.7%
12. 0.0435 13. 0.0025 14. 0.19% 15. 0.84% 16. 0.0036 17.
1
25. $42 26. $85.50 27. $1,800 28. $250 29. 0.12 or 12% 30. 0.16
Exercises 3.2
(B) $27,527.90 41. $12,175.69 42. $174,250.55 43. All three graphs
are increasing, curve upward, and have the same y intercept; the greater the
45. Period Interest Amount
3 $117.44 $1,321.95
46. Period Interest Amount
0 $2,000.00
1 $165.00 $2,165.00
3 $193.35 $2,536.96
4 $209.30 $2,746.26
47. (A) $7,440.94
(B) $5,536.76
48. (A) $4,730.96
49. (A) $19,084.49
(B) $11,121.45
50. (A) $2,970.16
(B) 5.27% 54. (A) 3.09% (B) 2.99% 55.
112
80. 8,021 days; 18.310 yr
81. Years Exact Rate Rule of 72
82. 83. 14 quarters 84. 17 months
85. To maximize earnings, choose 10%
simple interest for investments lasting
86. To maximize earnings, choose 9% simple interest for investments lasting
fewer than 154 months and 6% compounded monthly otherwise. 87. 3.33%
Exercises 3.3
15. FV =$13,435.19 16. FV =$4,164.59 17. PMT =$310.62
ANSWERS