5.3: Practice Problems
- Page ID
- 139277
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)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?