5.3: Practice Problems
- Page ID
- 139277
\( \newcommand{\vecs}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \)
\( \newcommand{\vecd}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash {#1}}} \)
\( \newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\)
( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\)
\( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\)
\( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\)
\( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\)
\( \newcommand{\Span}{\mathrm{span}}\)
\( \newcommand{\id}{\mathrm{id}}\)
\( \newcommand{\Span}{\mathrm{span}}\)
\( \newcommand{\kernel}{\mathrm{null}\,}\)
\( \newcommand{\range}{\mathrm{range}\,}\)
\( \newcommand{\RealPart}{\mathrm{Re}}\)
\( \newcommand{\ImaginaryPart}{\mathrm{Im}}\)
\( \newcommand{\Argument}{\mathrm{Arg}}\)
\( \newcommand{\norm}[1]{\| #1 \|}\)
\( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\)
\( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\AA}{\unicode[.8,0]{x212B}}\)
\( \newcommand{\vectorA}[1]{\vec{#1}} % arrow\)
\( \newcommand{\vectorAt}[1]{\vec{\text{#1}}} % arrow\)
\( \newcommand{\vectorB}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \)
\( \newcommand{\vectorC}[1]{\textbf{#1}} \)
\( \newcommand{\vectorD}[1]{\overrightarrow{#1}} \)
\( \newcommand{\vectorDt}[1]{\overrightarrow{\text{#1}}} \)
\( \newcommand{\vectE}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash{\mathbf {#1}}}} \)
\( \newcommand{\vecs}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \)
\( \newcommand{\vecd}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash {#1}}} \)
1. Janelle invests $18,000 at 8% simple interest for 41 years. How much is in the account at the end of the 41-year period?
2. Carlos invests $15,000 at 2% simple interest for 29 years. How much is in the account at the end of the 29-year period?
3. Kristina invests $13,000 at 7% simple interest for 32 years. How much is in the account at the end of the 32-year period?
4. How much would you need to deposit in an account now in order to have $3,000 in the account in 5 years? Assume the account earns 2% simple interest.
5. How much would you need to deposit in an account now in order to have $2,000 in the account in 15 years? Assume the account earns 6% simple interest.
6. You invest $9600 in a savings account that pays 3.6% simple interest. How long will it take for this investment to double in value? Round your answer to the nearest cent.
7. Jenelle wants to invest $500 in a savings account that pays 4.3% simple interest. How long will it take for this investment to triple in value? Round your answer to the nearest cent.
8. Brian invests $1200 in a savings account that pays 5.1% simple interest. How long will it take for this investment to double in value? Round your answer to the nearest cent.
9. You deposit $300 in an account earning 5% interest compounded annually. How much will you have in the account in 10 years?
10. How much will $1,000 deposited in an account earning 7% interest compounded annually be worth in 20 years?
11. You deposit $9,400 in an account earning 4% interest compounded semi-annually. How much will you have in the account in 5 years?
12. You deposit $2,100 in an account earning 2.5% interest compounded semi-annually. How much will you have in the account in 7 years?
13. You deposit $4,000 in an account earning 8% interest compounded monthly. How much will you have in the account in 10 years?
14. You deposit $200 in an account earning 5.2% interest compounded monthly. How much will you have in the account in 15 years?
15. You deposit $2,000 in an account earning 3% interest compounded monthly.
a. How much money will you have in the account in 20 years?
b. How much interest will you earn?
16. You deposit $10,000 in an account earning 4% interest compounded monthly.
a. How much money will you have in the account in 25 years?
b. How much interest will you earn?
17. You deposit $5,300 in an account earning 5% interest compounded quarterly. How much will you have in the account in 6 years?
18. You deposit $7,000 in an account earning 3.5% interest compounded quarterly. How much will you have in the account in 8 years?
19. You deposit $3,000 in an account earning 8% interest compounded quarterly. How much will you have in the account in 10 years?
20. How much would you need to deposit in an account now in order to have $4,000 in the account in 10 years? Assume the account earns 3% interest compounded monthly.
21. How much would you need to deposit in an account now in order to have $2,500 in the account in 5 years? Assume the account earns 2.5% interest compounded monthly.
22. How much would you need to deposit in an account now in order to have $6,000 in the account in 8 years? Assume the account earns 6% interest compounded monthly.
23. How much would you need to deposit in an account now in order to have $20,000 in the account in 10 years? Assume the account earns 7% interest compounded quarterly.
24. How much would you need to deposit in an account now in order to have $3,000 in the account in 15 years? Assume the account earns 2% interest compounded quarterly.
25. How much would you need to deposit in an account now in order to have $7,000 in the account in 10 years? Assume the account earns 3% interest compounded annually.
26. You deposit $23,000 in an account. Find the value of the investment at the end of 10 years if the account earns
a. 7% interest compounded annually
b. 7% simple interest
27. You deposit $4,000 in an account. Find the value of the investment at the end of 10 years if the account earns
a. 5% interest compounded annually
b. 5% simple interest
28. A bank features a savings account that has an annual percentage rate of 2.8% with interest compounded monthly. Devin deposits $9,500 into the account.
a. How much money will Devin have in the account in 1 year?
b. What is the annual percentage yield (APY) for the savings account?
29. A bank features a savings account that has an annual percentage rate of 5.1% with interest compounded quarterly. Miranda deposits $3,000 into the account.
a. How much money will Miranda have in the account in 1 year?
b. What is the annual percentage yield (APY) for the savings account?