Cars
Suppose you took out a loan to pay for a car for $25,000 at an interest rate of 7%. It will take you 5 years to pay off this loan. What is your monthly payment?
You deposit $2,000 into an account at Hometown Bank, Which has a rate of 4%. Find the interest at the end of the first year.
The interest is $80
You deposit $7,500 in an account that has a rate of 1.2%. The interest is compounded monthly.
How much money will you have after 5 years?
You will have $7,963.54
How much money should be deposited today in an account that earns 8% compounded monthly so that it will accumulate to $10,000 in five years.
$6,712.10
Find the rate for the following problems using the simple interest formula.
Hint: You will need to use algebra
I = $2,180 P = $7,000 t = 5 years
6.23%
Suppose you took out a loan to pay for a car for $45,000 at an interest rate of 8%. It will take you 6 years to pay off this loan. What is your monthly payment?
You deposit $12,000 into an account at Hometown Bank, Which has a rate of 12%. Find the interest after 2 years.
The interest is $2,880
You deposit $18,252 in an account that has a rate of 2.24%. The interest is compounded quarterly.
How much money will you have after 7 years?
You will have $21,341.15
How much money should be deposited today in an account that earns 6.5% compounded quarterly so that it will accumulate to $17,000 in 7 years.
$10,825.13
Find the time, rounded to the nearest year, for the following problems using the simple interest formula.
Hint: You will need to use algebra
I = $12,500 P = $7,000 r = 8%
9 years
Suppose you took out a loan to pay for a car for $70,400 at an interest rate of 7.5%. It will take you 9 years to pay off this loan. What is your monthly payment?
You deposit $17,525 into an account at Hometown Bank, Which has a rate of 1.7%. Find the interest after 5 years.
The interest is $1,489.63
You deposit $8,000 in an account that has a rate of 4.02%. The interest is compounded semiannually.
How much money will you have after 8 years?
You will have $10,999.53
How much money should be deposited today in an account that earns 4.25% compounded semiannually so that it will accumulate to $22,500 in 8 years.
$16,071.98
Find the principal for the following problems using the simple interest formula.
Hint: You will need to use algebra
I = $9,200 r = 5% t = 4 months
$46,000
Suppose you took out a loan to pay for a car for $65,320 at an interest rate of 6.25%. It will take you 8 years to pay off this loan. What is your monthly payment?
A loan of $1,060 has been made 6.5% for three months. Find the loan's future value.
The loan's future value is $1,077.23
How much money should be deposited today in an account that earns 6% compounded monthly so that it will accumulate to $20,000 in 5 years?
You should deposit $14,827.44
How much money should be deposited today in an account that earns 0.15% compounded monthly so that it will accumulate to $2,000 in 3 years.
$1,991.02
Find the principal for the following problems using the compound interest formula.
Hint: You will need to use algebra
A = $10,000 r= 1.5% t = 8 years n = 2
$8,873.18
Suppose you took out a loan to pay for a car for $95,000 at an interest rate of 7.05%. It will take you 60 months to pay off this loan. What is your monthly payment?
Find the rate as a percent for the following problem using the simple interest formula.
Hint: You will need to use algebra
I = $1,080 P = $6,000 t = 4 years
The rate is 4.5%
You decide to invest $8,000 for 6 years and you have a choice between to accounts. The first pays 2.5% per year, compounded monthly. The second pays 2.49% per year, compounded quarterly. Which is the better investment?
Option A: $9,293.22
Option B: $9,284.80
How much money should be deposited today in an account that earns 11.23% compounded annually so that it will accumulate to $53,000 in 12 years.
$14,777.90
Find the principal for the following problems using the compound interest formula.
Hint: You will need to use algebra
A = $110,000 r= 5.5% t = 9 years n = 4
$67,279.30