A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market rate of 7%. Interest is paid annually. What is the amount of interest the bondholders will receive at the end of the year?

Find the simple interest paid to the nearest cent for each loan amount, interest rate, and time. $1,000, 7%, 2 years

Find the simple interest paid to the nearest cent for each loan amount, interest rate, and time. $725, 6.25%, 1 year

What happens to the present value of an annuity as the interest rate increases?

Suppose that $20,000 is invested at continuous rate r and grows to$81,104 in 28 years. Find the interest rate r.

The formula

$$I_t=\frac{I_f}{1-T}$$

gives the taxable interest rate $I_t$ equivalent to the tax-free interest rate $I_f$ for a person in the $(100 \cdot T) \%$ tax bracket. Solve for $T$.

You are investing P dollars at an annual interest rate of r, compounded continuously, for t years. Which of the following would result in the highest value of the investment? Explain your reasoning. Double your interest rate.

The bank offered a 0.6% interest rate. Find 0.6% of $1300.

a. At what interest rate, compounded annually, would you need to invest $500 in order to have$625 in 2 years? b. At this interest rate, how long would it take for your $500 to double in value?

What happens to the present value of an annuity as the interest rate increases?

Bill Rich signed a 180-day note for $1,250. He repaid the loan when due with interest at an annual rate of 12 % using a banker's year.

Tony Colito paid$19.50 in interest on a loan of $2,600 for 1 month. What rate of interest did he pay?

The monthly payment on a $300,000 30 year mortgage at 6% annual interest rate is$1798.65. What is the interest payment for the first month?

For the following exercises, determine the value of the annuity for the indicated monthly deposit amount, the number of deposits, and the interest rate. Deposit amount: $100; total deposits: 120; interest rate: 10%, compounded semi-annually

A loan of $\$ 10,000$ was repaid at the end of $6$ months. What amount (principal and interest) was repaid, if a $6.5 \%$ annual rate of interest was charged?