Question 1

Solve by compound table. Find future value.
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Principal } & \text { Rate } & \text { Time } & \text { \#times Compounded per year } & \text { Future Value } \
\hline 12,000 & 10 \% & \text { 2 years } & \text { Semiannually } & \text { ? }\
\hline 
\end{array}$$

Accepted Answer

The answer of Solve by compound table. Find future value.
...

Question 2

Use the present value table to complete:
 $$\begin{array} { | l | l | l | l | l | l | l | } 
\hline \text { Future } & & & & & & \
\text { Amount } & \text { Length of } & \text { Rate } & \text { Table } & \text { Rate } & \text { P.V. } & \text { P.V. } \
 \text { Desired } & \text { Time } & \text { Compounded } & \text { Periods } & \text { Used } & \text { Factor } & \text { Amount } \
\hline \$ 14,000 & 5 \text { yrs } & 6 \% \text { quarterly } & \text { A } & \text { B } & \text { C } & \text { D } \
\hline
\end{array}$$

Accepted Answer

The answer of Use the present value table to complete:
...

Question 3

Find effective rate (APY)and show work: (round to nearest hundredth)
 $$\begin{array} { | l | l | l | l | } 
\hline \text { Principal } & \text { Rate } & \text { \#times Compounded per year } & \text { Effective Rate (APY) } \
\hline \$ , 500 & 10 \% & \text { Semiannually } & ?\
\hline
\end{array}$$

Accepted Answer

The answer of Find effective rate (APY)and show work: (round...

Question 4

Complete without using table:
 $$\begin{array} { | l | l | l | l | l | l | l | } 
\hline \text { Principal } & \text { Time } & \begin{array} { l } 
\text { Rate of } \
\text { Compound }
\end{array} & \begin{array} { l } 
\text { When } \
\text { Compounded }
\end{array} & \begin{array} { l } 
\text { \# of Periods to be } \
\text { Compounded }
\end{array} & \begin{array} { l } 
\text { Total } \
\text { Amount }
\end{array} & \begin{array} { l } 
\text { Total } \
\text { Interest }
\end{array} \
\hline \$ 1,500 & 1 \text { year } & 12 \% & \text { Quarterly } & \text { A } & \text { B } & \text { C } \
\hline
\end{array}$$

Accepted Answer

The answer of Complete without using table:
 \[\begin{array} { |...

Question 5

Janet Ring estimates she will need $35,000 for a new computerized office system. Janet decided to put aside the money today so that it will be available in 10 years. Pod Bank offers Janet 8% interest compounded semiannually. How much must Janet invest today to have $35,000 in 10 years?

Accepted Answer

8% / 2 = 4%; 10 × 2 = 20 periods; $35,000 × .4564 = $15,974.

Question 6

Solve by using compound table. Find future value.
 $$\begin{array} { | l | l | l | l | l | } 
\hline & & & & \text { Future } \
\text { Principal } & \text { Rate } & \text { Time } & \text { \# times Compounded per year } & \text { Value } \
\hline \$ 2,000 & 8 \% & \text { 2 years } & \text { Quarterly } & \text { ? } \
\hline
\end{array}$$

Accepted Answer

The answer of Solve by using compound table. Find future...

Question 7

Joe Diamond deposited $9,000 into the Rong Bank, which pays 12% interest, compounded quarterly. Calculate the amount Joe will have in his account at the end of four years.

Accepted Answer

$9,000 × 1.6047 = $14,442.30.

Question 8

Complete without using table:
 $$\begin{array} { | l | l | l | l | l | l | l | } 
\hline \text { Principal } & \text { Time } & \begin{array} { l } 
\text { Rate of } \
\text { Compound }
\end{array} & \begin{array} { l } 
\text { When } \
\text { Compounded }
\end{array} & \begin{array} { l } 
\text { \# of Periods to be } \
\text { Compounded }
\end{array} & \begin{array} { l } 
\text { Total } \
\text { Amount }
\end{array} & \begin{array} { l } 
\text { Total } \
\text { Interest }
\end{array} \
\hline \$ 300 & 1 \text { year } & 16 \% & \text { Quarterly } & \text { A } & \text { B } & \text { C } \
\hline
\end{array}$$

Accepted Answer

The answer of Complete without using table:
 \[\begin{array} { |...

Question 9

Use the present value table to complete:
 $\begin{array}{|l|l|l|l|l|l|l|}
\hline \begin{array}{l}
\text { Future } \
\text { Amount }
\end{array} & \text { Length of } & \text { Rate } & \text { Table } & \text { Rate } & \text { P.V. } & \text { P.V. } \
\text { Desired } & \text { Time } & \text { Compounded } & \text { Periods } & \text { Used } & \text { Factor } & \text { Amount } \
\hline \$ 12,000 & 12 \text { yrs } & \begin{array}{l}
12 \% \
\text { Semiannually }
\end{array} & \text { A } & \text { B } & \text { C } & \text { D } \
\hline
\end{array}$

Accepted Answer

The answer of Use the present value table to complete:
...

Question 10

Jim Ryan deposited $8,000 at National Bank at 6% interest compounded quarterly. What was the effective rate (APY)? (Round to the nearest hundredth percent.)

Accepted Answer

11eb6926_6e9b_5825_bb3a_cfd2b3ec8e33_TB8249_00 11eb6926_6e9b_5826_bb3a_71b32438e1b6_TB8249_00 $8,000 × 1.0614 = $8,491.20; $8,491.20 - $8,000 = $491.20; $491.20/$8,000 = 6.14%.

Question 11

Solve by using compound table. Find future value.
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Principal } & \text { Rate } & \text { Time } & \text { \#times Compounded per year } & \text { Future } \
\hline \$ 18,000 & 12 \% & \text { 4 years } & \text { Semiannually } & ? \
\hline
\end{array}$$

Accepted Answer

The answer of Solve by using compound table. Find future...

Question 12

Solve by using compound table:
 $$\begin{array} { | l | l | l | l | l | l | l | } 
\hline \text { Principal } & \text { Time } & \begin{array} { l } 
\text { Rate of } \
\text { Compound }
\end{array} & \begin{array} { l } 
\text { When } \
\text { Compounded }
\end{array} & \begin{array} { l } 
\text { \# of Periods to be } \
\text { Compounded }
\end{array} & \begin{array} { l } 
\text { Total } \
\text { Amount }
\end{array} & \begin{array} { l } 
\text { Total } \
\text { Interest }
\end{array} \
\hline \$ 300 & 1 \text { year } & 16 \% & \text { Quarterly } & \text { A } & \text { B } & \text { C } \
\hline
\end{array}$$

Accepted Answer

The answer of Solve by using compound table:
 \[\begin{array} {...

Question 13

Use the present value table to complete:
 $$\begin{array} { | l | l | l | l | l | l | l | } 
\hline\text { Future } & & & & & & \ 
\text { Amount } & \text { Length of } & \text { Rate } & \text { Table } & \text { Rate } & \text { P.V. } & \text { P.V. } \
 \text { Desired } & \text { Time } & \text { Compounded } & \text { Periods } & \text { Used } & \text { Factor } & \text { Amount } \
\hline \$ 8,000 & 10 \text { yrs } & 8 \% \text { semiannual } & \text { A } & \text { B } & \text { C } & \text { D } \
\hline
\end{array}$$

Accepted Answer

The answer of Use the present value table to complete:
...

Question 14

Solve by using compound table. Find future value.
 $$\begin{array} { | l | l | l | l | l | } 
\hline\text { Principal } & \text { Rate } & \text { Time } & \text { \#times Compounded per year } & \text { Future Value } \
\hline \$ 3,000 & 8 \% & \text { 3 years } & \text { Quarterly } & \text { ? } \
\hline
\end{array}$$

Accepted Answer

The answer of Solve by using compound table. Find future...

Question 15

Don Williams wants to buy a boat five years from today. He will need $40,000. Don wants you to calculate how much he needs today to put in the bank (10% compounded semiannually)to reach his goal in the future.

Accepted Answer

10 periods at 5% = .6139 × $40,000 = $24,556.

Question 16

Solve by using compound table:
 $$\begin{array} { | l | l | l | l | l | l | l | } 
\hline \text { Principal } & \text { Time } & \begin{array} { l } 
\text { Rate of } \
\text { Compound }
\end{array} & \begin{array} { l } 
\text { When } \
\text { Compounded }
\end{array} & \begin{array} { l } 
\text { \# of Periods to be } \
\text { Compounded }
\end{array} & \begin{array} { l } 
\text { Total } \
\text { Amount }
\end{array} & \begin{array} { l } 
\text { Total } \
\text { Interest }
\end{array} \
\hline \$ 1,500 & 1 \text { year } & 12 \% & \text { Quarterly } & \text { A } & \text { B } & \text { C } \
\hline
\end{array}$$

Accepted Answer

The answer of Solve by using compound table:
 \[\begin{array} {...

Question 17

John James lent Mel Karras $8,000 to open a pottery shop. Mel will repay John at the end of five years with interest, compounded quarterly, at 8%. How much will John receive at the end of five years?

Accepted Answer

8% / 4 = 2%, 5 × 4 = 20; $8,000 × 1.4859 = $11,887.20.

Question 18

Paul Lospennato wants to buy a house five years from today for $90,000. Paul wants you to calculate how much he needs today to put in the bank (10% compounded semiannually)to reach his goal in the future.

Accepted Answer

10 periods at 5% = .6139 × $90,000 = $55,251.

Question 19

Find effective rate (APY)and show work: (round to nearest hundredth)
 $$\begin{array} { | l | l | l | l | } 
\hline \text { Principal } & \text { Rate } & \text { \#times Compounded per year } & \text { Effective Rate (APY) } \
\hline \$8,000 & 12 \% & \text { Semiannually } & ?\
\hline
\end{array}$$

Accepted Answer

The answer of Find effective rate (APY)and show work: (round...

Question 20

Use the present value table to complete:
 $$\begin{array} { | l | l | l | l | l | l | l | } 
\hline\text { Future } & & & & & \ 
\text { Amount } & \text { Length of } & \text { Rate } & \text { Table } & \text { Rate } & \text { P.V. } & \text { P.V. } \
\text { Desired } & \text { Time } & \text { Compounded } & \text { Periods } & \text { Used } & \text { Factor } & \text { Amount } \
\hline \$ 24,000 & 6 \text { yrs } & 8 \% \text { quarterly } & \text { A } & \text { B } & \text { C } & \text { D } \
\hline
\end{array}$$

Accepted Answer

The answer of Use the present value table to complete:
...

Quiz 12: Compound Interest and Present Value

Find effective rate (APY)and show work: (round to nearest hundredth) $\begin{array} { | l | l | l | l | } \hline \text { Principal } & \text { Rate } & \text { \#times Compounded per year } & \text { Effective Rate (APY) } \\\hline \$ , 500 & 10 \% & \text { Semiannually } & ?\\\hline\end{array}$

Janet Ring estimates she will need $35,000 for a new computerized office system. Janet decided to put aside the money today so that it will be available in 10 years. Pod Bank offers Janet 8% interest compounded semiannually. How much must Janet invest today to have $35,000 in 10 years?

Joe Diamond deposited $9,000 into the Rong Bank, which pays 12% interest, compounded quarterly. Calculate the amount Joe will have in his account at the end of four years.

Jim Ryan deposited $8,000 at National Bank at 6% interest compounded quarterly. What was the effective rate (APY)? (Round to the nearest hundredth percent.)

Don Williams wants to buy a boat five years from today. He will need $40,000. Don wants you to calculate how much he needs today to put in the bank (10% compounded semiannually)to reach his goal in the future.

John James lent Mel Karras $8,000 to open a pottery shop. Mel will repay John at the end of five years with interest, compounded quarterly, at 8%. How much will John receive at the end of five years?

Paul Lospennato wants to buy a house five years from today for $90,000. Paul wants you to calculate how much he needs today to put in the bank (10% compounded semiannually)to reach his goal in the future.

Find effective rate (APY)and show work: (round to nearest hundredth) $\begin{array} { | l | l | l | l | } \hline \text { Principal } & \text { Rate } & \text { \#times Compounded per year } & \text { Effective Rate (APY) } \\\hline \$8,000 & 12 \% & \text { Semiannually } & ?\\\hline\end{array}$