Asked by maddy 6 years ago

**4.** Find the accumulated amount at the end of 8 months on a \$1200 bank deposit paying simple interest at a rate 7%/year.

**6.** A bank deposit paying simple interest at the rate of 5%/year grew a sum of \$3100 in 10 months. Find the principal.

**42. RETIREMENT FUNDS:** Five and a half years ago, Chris invested $10,000 in a retirement fund that grew at the rate of 10.82%/year compounded quarterly. What is his account worth today?

**16. SAVINGS ACCOUNT:** If Jackson deposits \$100 at the end of each month in a savings account earning interest at the rate of 8%/year compounded monthly, how much will he have on deposit in his savings account at the end of 6yr, assuming that he makes no withdrawals during that period?

**28. PURCHASING A HOME:** Refer to Exercise 27. If local mortgage rates were increased to 8%, how would this affect the price range of houses that the Johnsons should consider?

**Exercise 27:** The Johnsons have accumulated a nest egg of \$40,000 that they intend to use as a down payment toward the purchase of a new house. Because their present gross income has placed then in a relatively high tax bracket, they have decided to invest a minimum of \$2400/month in monthly payments (to take advantage of the tax deduction) toward the purchase of their house. However, because of other financial obligations, their monthly payments should not exceed \$3000. If local mortgage rates are 7.5%/year compounded monthly for a conventional 30-yr mortgage, what is the price range of houses that they should consider? Answer is between \$383,242 and 469,053

**6.** Find the periodic payment *R* required to amortize a loan of *P* dollars over *t* yr with interest charged at the rate of *r*%/year compound *m* times a year: *P* = 80,000,*r* = 10.5, *t =* 15, *m* =12

**20. LOAN AMORTIZATION:** What monthly payment is required to amortize a loan of $30,000 over 10 yr if interest at the rate of 12%/year is charged on the unpaid balance and interest calculations are made at the end of each month?

**30. SINKING FUNDS:** The management of Gibraltar Brokerage Services anticipates a capital expenditure of $20,000 in 3yr for the purchase of new computers and has decided to set up a sinking fund to finance this purchase. If the fund earns interest at the rate of 10%/year compounded quarterly, determine the size of each (equal) quarterly installment that should be deposited in the fund.

**46. FINANCING A HOME:** Sarah secured a bank loan of $200,000 for the purchase of a house. the mortgage is to be amortized through monthly payments for a team of 15 yr, with an interest rate of 6%/year compounded monthly on the unpaid balance. She plans to sell her house in 5 yr. How much will Sarah still owe on her hose?

Find the

maddy

Answered by bhdrkn 6 years ago

**Excerpt from file: **Math Tutorial 4. Find the accumulated amount at the end of 8 months on a 1200 bank deposit paying simple interest at a rate 7%/year. ( ( )( )) which means 56 in earned interest, 1256 total. 6. A bank deposit paying simple interest at the rate of 5%/year grew a sum of 3100 in 10 months. Find the

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