1 / 37

MATH 110 Sec 8-2: Interest Practice Exercises

MATH 110 Sec 8-2: Interest Practice Exercises. Find the simple interest if the principal is $500, the interest rate is 11% and the time is 2 years. MATH 110 Sec 8-2: Interest Practice Exercises. Find the simple interest if the principal is $500, the interest rate is 11% and the time is 2 years.

tatiana-hendricks
Download Presentation

MATH 110 Sec 8-2: Interest Practice Exercises

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. MATH 110 Sec 8-2: InterestPractice Exercises Find the simple interest if theprincipal is $500, the interest rate is 11%and the time is 2 years.

  2. MATH 110 Sec 8-2: InterestPractice Exercises Find the simple interest if theprincipal is $500, the interest rate is 11%and the time is 2 years.

  3. MATH 110 Sec 8-2: InterestPractice Exercises If the simple interest on $3000 for9 years is $1620, then what is the rate?

  4. MATH 110 Sec 8-2: InterestPractice Exercises If the simple interest on $3000 for9 years is $1620, then what is the rate?

  5. MATH 110 Sec 8-2: InterestPractice Exercises Use the future value formula for simple interest to find P if A=$2448, r=6%, t=6.

  6. MATH 110 Sec 8-2: InterestPractice Exercises Use the future value formula for simple interest to find P if A=$2448, r=6%, t=6. )

  7. MATH 110 Sec 8-2: InterestPractice Exercises What is the value of an account at the end of 6 yearsif a principal of $13,000 is deposited in an account atan annual interest rate of 4% compounded monthly?(Round final answer to the nearest cent.)

  8. MATH 110 Sec 8-2: InterestPractice Exercises What is the value of an account at the end of 6 yearsif a principal of $13,000 is deposited in an account atan annual interest rate of 4% compounded monthly?(Round final answer to the nearest cent.) where

  9. MATH 110 Sec 8-2: InterestPractice Exercises What is the value of an account at the end of 6 yearsif a principal of $13,000 is deposited in an account atan annual interest rate of 4% compounded monthly?(Round final answer to the nearest cent.) where Also remember that: A=accumulated(future)value P=principal(presentvalue) t=time(inyears) r=annualinterestrate(decimal)

  10. MATH 110 Sec 8-2: InterestPractice Exercises A student has a government-backed loan for which payments are not due and interest does notaccumulate until the student stops attending college.If the student borrowed $10,000 at an annual interest rate of 7.5%, how much interest is due 4 monthsafter the student must begin payments?

  11. MATH 110 Sec 8-2: InterestPractice Exercises A family is planning a vacation in 2 years. They wantto get a certificate of deposit for $1500 to be cashed in for the trip. What is the minimum annual simple interest rate needed to have $2100 for the vacation?

  12. MATH 110 Sec 8-2: InterestPractice Exercises A family is planning a vacation in 2 years. They wantto get a certificate of deposit for $1500 to be cashed in for the trip. What is the minimum annual simple interest rate needed to have $2100 for the vacation? Solution I:

  13. MATH 110 Sec 8-2: InterestPractice Exercises A family is planning a vacation in 2 years. They wantto get a certificate of deposit for $1500 to be cashed in for the trip. What is the minimum annual simple interest rate needed to have $2100 for the vacation? Solution I: Solution II: Answer:

  14. MATH 110 Sec 8-2: InterestPractice Exercises The Consumer Price Index (CPI) is an inflation measure and is equal to the percent of change in the CPI between 2 years.

  15. MATH 110 Sec 8-2: InterestPractice Exercises The Consumer Price Index (CPI) is an inflation measure and is equal to the percent of change in the CPI between 2 years. a. What was the inflation rate from 1950 to 1990? (Roundinflationratepercenttoonedecimalplace.)

  16. MATH 110 Sec 8-2: InterestPractice Exercises The Consumer Price Index (CPI) is an inflation measure and is equal to the percent of change in the CPI between 2 years. a. What was the inflation rate from 1950 to 1990? (Roundinflationratepercenttoonedecimalplace.) Note: The inflation rate (using CPI) is a percent change:

  17. MATH 110 Sec 8-2: InterestPractice Exercises The Consumer Price Index (CPI) is an inflation measure and is equal to the percent of change in the CPI between 2 years. b. Ifapairofsneakerscost$38in1950,usetheCPItoestimatethecostin1990.(Usetheunroundedvaluefrom part a but round the final answer to the nearest cent.)

  18. MATH 110 Sec 8-2: InterestPractice Exercises The Consumer Price Index (CPI) is an inflation measure and is equal to the percent of change in the CPI between 2 years. b. Ifapairofsneakerscost$38in1950,usetheCPItoestimatethecostin1990.(Usetheunroundedvaluefrom part a but round the final answer to the nearest cent.) Note 1: The unrounded value from part a was: .

  19. MATH 110 Sec 8-2: InterestPractice Exercises The Consumer Price Index (CPI) is an inflation measure and is equal to the percent of change in the CPI between 2 years. b. Ifapairofsneakerscost$38in1950,usetheCPItoestimatethecostin1990.(Usetheunroundedvaluefrom part a but round the final answer to the nearest cent.) Note 1: The unrounded value from part a was: . Note 2: The percent change in price from 1950 to 1990 is just the inflation rate from part a.

  20. MATH 110 Sec 8-2: InterestPractice Exercises The Consumer Price Index (CPI) is an inflation measure and is equal to the percent of change in the CPI between 2 years. b. Ifapairofsneakerscost$38in1950,usetheCPItoestimatethecostin1990.(Usetheunroundedvaluefrom part a but round the final answer to the nearest cent.) Note 1: The unrounded value from part a was: . Note 2: The percent change in price from 1950 to 1990 is just the inflation rate from part a.

  21. MATH 110 Sec 8-2: InterestPractice Exercises Compute the monthly payment for a simple interest loan of $2660, with an annual interest rate of 8% anda term of 5 years. (Round answer to the nearest cent.)

  22. MATH 110 Sec 8-2: InterestPractice Exercises Compute the monthly payment for a simple interest loan of $2660, with an annual interest rate of 8% anda term of 5 years. (Round answer to the nearest cent.) Strategy: Step 1: Find the future value A of the loan.

  23. MATH 110 Sec 8-2: InterestPractice Exercises Compute the monthly payment for a simple interest loan of $2660, with an annual interest rate of 8% anda term of 5 years. (Round answer to the nearest cent.) Strategy: Step 1: Find the future value A of the loan. Step 2: Divide A by the total number of payments for the life of the loan

  24. MATH 110 Sec 8-2: InterestPractice Exercises Compute the monthly payment for a simple interest loan of $2660, with an annual interest rate of 8% anda term of 5 years. (Round answer to the nearest cent.) Strategy: Step 1: Find the future value A of the loan.

  25. MATH 110 Sec 8-2: InterestPractice Exercises Compute the monthly payment for a simple interest loan of $2660, with an annual interest rate of 8% anda term of 5 years. (Round answer to the nearest cent.) Strategy: Step 1: Find the future value A of the loan. A=$3724 Step 2: Divide A by the total number of payments for the life of the loan

  26. MATH 110 Sec 8-2: InterestPractice Exercises Compute the monthly payment for a simple interest loan of $2660, with an annual interest rate of 8% anda term of 5 years. (Round answer to the nearest cent.) Strategy: Step 1: Find the future value A of the loan. A=$3724 Step 2: Divide A by the total number of payments for the life of the loan where # of payments = (12 / year)(5 years) = 60

  27. MATH 110 Sec 8-2: InterestPractice Exercises A student graduates from college with $43,000 in student loans and a 6.5% annual simple interest rate. To reduce his debt as quickly as possible, beginning next month he is going to pay $700 per month toward the loan. After his first payment, how much will he still owe on the loan? (Round answer to nearest cent.)

  28. MATH 110 Sec 8-2: InterestPractice Exercises A student graduates from college with $43,000 in student loans and a 6.5% annual simple interest rate. To reduce his debt as quickly as possible, beginning next month he is going to pay $700 per month toward the loan. After his first payment, how much will he still owe on the loan? (Round answer to nearest cent.) Strategy Step1:Findamtofinterestowedfor1stmonth.

  29. MATH 110 Sec 8-2: InterestPractice Exercises A student graduates from college with $43,000 in student loans and a 6.5% annual simple interest rate. To reduce his debt as quickly as possible, beginning next month he is going to pay $700 per month toward the loan. After his first payment, how much will he still owe on the loan? (Round answer to nearest cent.) Strategy Step1:Findamtofinterestowedfor1stmonth. Step2:Findtotalowed(Principal+Interest).

  30. MATH 110 Sec 8-2: InterestPractice Exercises A student graduates from college with $43,000 in student loans and a 6.5% annual simple interest rate. To reduce his debt as quickly as possible, beginning next month he is going to pay $700 per month toward the loan. After his first payment, how much will he still owe on the loan? (Round answer to nearest cent.) Strategy Step1:Findamtofinterestowedfor1stmonth. Step2:Findtotalowed(Principal+Interest). Step3:Subtract off the 1st month’s actual payment.

  31. MATH 110 Sec 8-2: InterestPractice Exercises A student graduates from college with $43,000 in student loans and a 6.5% annual simple interest rate. To reduce his debt as quickly as possible, beginning next month he is going to pay $700 per month toward the loan. After his first payment, how much will he still owe on the loan? (Round answer to nearest cent.) Strategy Step1:Findamtofinterestowedfor1stmonth.

  32. MATH 110 Sec 8-2: InterestPractice Exercises A student graduates from college with $43,000 in student loans and a 6.5% annual simple interest rate. To reduce his debt as quickly as possible, beginning next month he is going to pay $700 per month toward the loan. After his first payment, how much will he still owe on the loan? (Round answer to nearest cent.) Strategy Step1:Findamtofinterestowedfor1stmonth.

  33. MATH 110 Sec 8-2: InterestPractice Exercises A student graduates from college with $43,000 in student loans and a 6.5% annual simple interest rate. To reduce his debt as quickly as possible, beginning next month he is going to pay $700 per month toward the loan. After his first payment, how much will he still owe on the loan? (Round answer to nearest cent.) Strategy Step1:Findamtofinterestowedfor1stmonth. Note: Time (t) must be in years and year.

  34. MATH 110 Sec 8-2: InterestPractice Exercises A student graduates from college with $43,000 in student loans and a 6.5% annual simple interest rate. To reduce his debt as quickly as possible, beginning next month he is going to pay $700 per month toward the loan. After his first payment, how much will he still owe on the loan? (Round answer to nearest cent.) Strategy Step1:Findamtofinterestowedfor1stmonth.$232.92

  35. MATH 110 Sec 8-2: InterestPractice Exercises A student graduates from college with $43,000 in student loans and a 6.5% annual simple interest rate. To reduce his debt as quickly as possible, beginning next month he is going to pay $700 per month toward the loan. After his first payment, how much will he still owe on the loan? (Round answer to nearest cent.) Strategy Step1:Findamtofinterestowedfor1stmonth.$232.92 Step2:Findtotalowed(Principal+Interest). TOTAL OWED = PRINCIPAL + INTEREST

  36. MATH 110 Sec 8-2: InterestPractice Exercises A student graduates from college with $43,000 in student loans and a 6.5% annual simple interest rate. To reduce his debt as quickly as possible, beginning next month he is going to pay $700 per month toward the loan. After his first payment, how much will he still owe on the loan? (Round answer to nearest cent.) Strategy Step1:Findamtofinterestowedfor1stmonth.$232.92 Step2:Findtotalowed(Principal+Interest). $43232.92

  37. MATH 110 Sec 8-2: InterestPractice Exercises A student graduates from college with $43,000 in student loans and a 6.5% annual simple interest rate. To reduce his debt as quickly as possible, beginning next month he is going to pay $700 per month toward the loan. After his first payment, how much will he still owe on the loan? (Round answer to nearest cent.) Strategy Step1:Findamtofinterestowedfor1stmonth.$232.92 Step2:Findtotalowed(Principal+Interest). $43232.92 Step3:Subtract off the 1st month’s actual payment ($700). $43232.92 - $700.00 = $42532.92

More Related