Find the price a purchaser should be willing to pay for the given bond. Assume that the coupon interest is paid twice a year.

$25,000 bond with coupon rate 7% that matures in 10 years; current interest rate is 6%.

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, $r$.

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

(a) increase collision frequency

(b) increase collision energy

(c) effective collision orientation

You are given the yearly interest earned from a total of $18,000 invested in two funds paying the given rates of simple interest. Write and solve a system of equations to find the amount invested at each rate.$ $$ \begin{matrix} \text{Yearly Interest} & \text{Rate 1} & \text{Rate 2}\\ \text{840} & \text{6\\%} & \text{3\\%}\\ \end{matrix} $$ $

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.

Kelly Bullock borrowed$4,800 for 6 months and paid $264 interest. What rate of interest did she pay?

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.

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.

Which of the following bank accounts has the highest effective annual return?

a. An account that pays 8% nominal interest with monthly compounding.
b. An account that pays 8% nominal interest with annual compounding.
c. An account that pays 7% nominal interest with daily (365-day) compounding.
d. An account that pays 7% nominal interest with monthly compounding.
e. An account that pays 8% nominal interest with daily (365-day) compounding.

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.

Find the monthly payment, amount paid, and interest charged for a $90,000 mortgage loan at an annual interest rate of 10% for 20 years.

Suppose you deposit m 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 in your account at the beginning of the second month is the sum of your second deposit and your initial deposit plus interest, or m+n(1+r). Continuing in 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 $100 at an annual interest rate of 1.8%

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 in 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 in 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 $100 at an annual interest rate of 1.8%

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?

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.