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Twitter1.) Loan Repayment Susan Carsten borrowed $25,900 from her father to start a flower shop. She repaid him after 11 mo, with interest of 8.4%. Find the total amount she repaid.
2.) Stock Growth A stock that sold for $22 at the beginning of the year was selling for $24 at the end of the year. If the stock paid a dividend of $.50 per share, what is the simple interest rate on an investment in this stock? (Hint: Consider the interest to be the increase in value plus the dividend.)
3.) Loan Interest A developer needs $80,000 to buy land. He is able to borrow the money at 10% per year compounded quarterly. How much will the interest amount to if he pays off the loan in 5 years?
4.) Effective Rate An advertisement for E*TRADE Bank boasted “We’re ahead of banks that had a 160-year start,” with an APY (or effective rate) of 2.01%.* The actual rate was not stated. Given that interest was compounded monthly, find the actual rate.
5.) . Investments Suppose $10,000 is invested at an annual rate of 5% for 10 years. Find the future value if interest is compounded as follows.
a. Annually b. Quarterly
c. Monthly d. Daily (365 days)
6) Doubling Time Suppose a conservation campaign coupled with higher rates causes the demand for electricity to increase at only 2% per year, as it has recently. Find the number of years before the utilities will need to double generating capacity.
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