Simple and Compound Interest Use simple interest to

Simple and Compound Interest Use simple interest to find BOTH the amount of interest earned AND the ending balance (HINT : add Interest to principal). 1) $34, 100 at 4% for 1 year 3) $4, 000 at 3% for years 5) $14, 000 at 6% for years 7) $43, 800 at 4. 8% for years 9) $7, 400 at 10. 5% for ¼ of a year 2) $210 at 8% for years 4) $20, 600 at 8% for years 6) $2, 300 at 7% for years 8) $35, 800 at 8. 2% for years 10) $1, 900 at 5. 9% for 2 ¾ years REMEMBER: Time needs to be expressed in years, so if it is a portion of a year turn time into a decimal. To this, divide the number of months by 12 or work out what fraction of a year is involved.

Answers 1) $38, 192. 00 2) $327. 60 3) $4, 480. 00 4) $23, 896. 00 5) $21, 560. 00 6) $3, 749. 00 7) $48, 004. 80 8) $44, 606. 80 9) $7, 594. 25 10) $2, 208. 28 Ending balance $38, 192. 00 + $34, 100 $327. 60 + $210 $4, 480. 00 + $4, 000

Find the total value of the investment (A) after the time given, AND the amount of interest earned. To do this subtract principal from total amount I = A - P 1) $7, 300 at 7% compounded monthly for years 2) $1, 030 at 4% compounded semiannually for years 3) $18, 000 at 9% compounded semiannually for years 4) $1, 500 at 7% compounded annually for years

5) $55, 000 at 16% compounded quarterly for years 6) $1, 240 at 8% compounded annually for years 7) $28, 600 at 7. 9% compounded semiannually for years 8) $21, 000 at 13. 6% compounded quarterly for 5 years 9) $12, 700 at 8. 8% compounded daily for year 10) $130 at 9. 4% compounded quarterly for years I’ll go over the answers on Monday. These questions are VERY similar to those on the CAT

1) $9000. 36 2) $1, 114. 91 3) $30, 525. 87 4) $1, 837. 56 5) $75, 271. 30 6) $1, 446. 34 7) $33, 393. 66 8) $40, 985. 48 9) $13, 868. 10 10) $156. 55 Amount of interest $9000. 36 - $7, 300 = $1700. 36