Assume federal debt reaches about $\$ 20$ trillion in $2017$.

If interest rates remain at the $2012$ level of $2.1 \%$, find the interest payment on the debt. Discuss the change in the interest payment with a $0.5$-point increase in the interest rate.

You are given the yearly interest earned from a total of $18,000 invested in two funds paying the given rates of simple interest. Write and solve a system of equations to find the amount invested at each rate.$ $$ \begin{matrix} \text{Yearly Interest} & \text{Rate 1} & \text{Rate 2}\\ \text{1182} & \text{5.6\\%} & \text{6.8\\%}\\ \end{matrix} $$ $

Suppose you deposit in dollars at the beginning of every month in a savings account that earns a monthly interest rate of r which is the annual interest rate divided by 12 (for example, if the annual interest rate is 2.4%, r=0.024 /12=0.002). For an initial investment of m dollars, the amount of money the your account at the beginning of the second month is the sum of your second deposit and your initial deposit plus interest, or m + m(1 + r). Continuing this fashion, it can be shown that the amount of money in your account after n months is $A_{n}=m+m(1+r)+\cdots+m(1+r)^{n-1}$. Use geometric sums to determine the amount of money in your savings account after 5 years (60 months) using the given monthly deposit and interest rate. Monthly deposits of $250 at a monthly interest rate of 0.2%.

A $6000 certificate of deposit is purchased for$6000 and is held for seven years. If the certificate earns an effective rate of 8%, what is it worth at the end of the period?

Determine the cost of the points and the new interest rate for each loan amount and interest rate. Assume each point costs 1% of the loan amount. $550,000, original APR 4.75%, 1 point with a 0.3% discount.

Which of the following theoretical factors increases the rate of a reaction?

(a) increase collision frequency

(b) increase collision energy

(c) effective collision orientation

A $4000 certificate of deposit is purchased for$4000 and is held for eleven years. If the certificate earns an effective rate of 7%, what is it worth at the end of that period?

In years 1 and 2, the consumer price index is 125 and 160, respectively. Every inflation is expected. What is the real interest rate at Commerce Bank of Beverly Hills if year two's interest rate is 35 percent?

The monthly payment that amortizes a loan of A dollars in t years when the interest rate is r/year compounded monthly, is given by $P=f(A, r, t)=\frac{A r}{12\left[1-\left(1+\frac{r}{12}\right)^{-12 t}\right]}$ a. What is the monthly payment for a home mortgage of $300,000 that will be amortized over 30 years with an interest rate of 4%/year? An interest rate of 6%/year? b. Find the monthly payment for a home mortgage of$300,000 that will be amortized over 20 years with an interest rate of 6%/year.

Suppose an amount P is invested at an interest rate r and A is the amount after t years.

(a) Write an expression for $A$ if the interest is compounded $n$ times per year.

(b) Write an expression for $A$ if the interest is compounded continuously.

A home buyer takes out a $30,000 mortgage at an annual interest rate of 9%. This loan is to be repaid over 20 years in 240 equal monthly installments of x dollars. (a) Compute x. (b) Find x if the annual interest rate is 10%

Use the compound interest formula, $A(t)=P\left(1+\frac{r}{n}\right)^{n t}$.

Use properties of rational exponents to solve the compound interest formula for the interest rate, $r$.

You are given the yearly interest earned from a total of $18,000 invested in two funds paying the given rates of simple interest. Write and solve a system of equations to find the amount invested at each rate.$ $$ \begin{matrix} \text{Yearly Interest} & \text{Rate 1} & \text{Rate 2}\\ \text{684} & \text{2.75\\%} & \text{4.25\\%}\\ \end{matrix} $$ $

At bank A, $600 is invested with an interest rate of 5% compounded annually. At bank B,$500 is invested with an interest rate of 6% compounded quarterly. Which account will have a larger balance after 10 years? 20 years