2.3.1: Exercises
- Page ID
- 83276
\( \newcommand{\vecs}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \) \( \newcommand{\vecd}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash {#1}}} \)\(\newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\) \( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\) \( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\) \( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\) \( \newcommand{\Span}{\mathrm{span}}\) \(\newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\) \( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\) \( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\) \( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\) \( \newcommand{\Span}{\mathrm{span}}\)\(\newcommand{\AA}{\unicode[.8,0]{x212B}}\)
Section 2.3.1 Exercises
- You borrow $350 from your aunt and promise to pay her back in one month with 3% interest. How much extra will she get when you pay her back?
- You were charged $487.50 in interest at the end of one year for money you borrowed from a bank that charged 6.5% interest. How much did you borrow?
- You had to pay $618.12 in interest on a loan for $10,750 over the first year. What was the interest rate used? Round the percent to two decimal places.
- A friend lends you $200 for a week, which you agree to repay with 5% one-time interest. How much will you have to repay?
- Your brother deposits $1200 in a savings account that pays 4% simple interest. How much will he have in the account in 4 years if he doesn't touch it.
- Suppose you obtain a $3,000 T-note with a 3% annual rate, paid quarterly, with maturity in 5 years. How much interest will you earn?
- Suppose you take a cash advance of $750 on your credit card. The service charge is $5.50. You pay off the cash advance after 45 days. Your credit card statement shows the interest on the cash advance was $29.59. For the interest alone, what is the APR?
- If you buy a 3-year CD that pays 2.4% simple interest for $75,000, what will it be worth at the end of its term?
- If you invest $1500 at 4.25% simple interest and the investment is later worth $1553.13, what was the term?
- A T-bill is a type of bond that is sold at a discount over the face value. For example, suppose you buy a 13-week T-bill with a face value of $10,000 for $9,800. This means that in 13 weeks, the government will give you the face value, earning you $200. What annual interest rate have you earned?
- Suppose you are looking to buy a $5000 face value 26-week T-bill. If you want to earn at least 1% annual interest, what is the most you should pay for the T-bill?