For the following exercise,

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, $r$.

For the following exercise, 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, $r$.

Yield to maturity The Salem Company bond currently sells for $\$ 955$, has a $12 \%$ coupon interest rate and a $\$ 1,000$ par value, pays interest annually, and has $15$ years to maturity. Discuss the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value of a bond.

You deposit 900 dollars in an account that compounds interest yearly. Find the balance after 10 years for the given interest rate.

7 percent

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

Lois Larczyk. Mortgage loan of $46,000.00. Interest rate is 5 percent. Monthly payment is$269.10. How much of the first monthly payment is for interest?

The Khos invested $7000, part at 6% and the rest at 10% simple annual interest. If they had reversed the amounts invested at each rate, they would have earned$120 less in annual interest. How much was invested at each rate?

Solve. A man invested $6000, part of it at 5% simple interest and the rest at 7% simple interest. If his annual interest income is$372, how much did he invest at each rate?

Over 3 years, you save your earnings from a summer job. The polynomial 1600x³ + 1200x² + 800x represents your savings, with interest, at the end of the 3 years. The annual interest rate equals x - 1. Find the interest rate needed so that you will have $4000 at the end of 3 years.

You are given the yearly interest earned from a total of $\ \mathbf{\$ 1 8, 0 0 0}$ invested in two funds paying the given rates of simple interest. Write and solve a system of equations to find the amount invested at the rate.

$$\begin{array}{lll}\text { Yearly Interest } & \text { Rate 1 } & \text { Rate 2 } \\ \$ 684 & 2.75 \% & 4.25 \% \\ \end{array}$$

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. $1,000,000, original APR 4.45%, 2 points with a 0.215% discount per point.

Yield to maturity The Salem Company bond currently sells for $\$ 955$, has a $12 \%$ coupon interest rate and a $\$ 1,000$ par value, pays interest annually, and has 15 years to maturity. b. Explain the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value of a bond.

The simple interest formula is $A=P+\operatorname{Prt}$, where $P$ is the principal, or original amount invested, $r$ is the annual simple interest rate, and $A$ is the value of the investment at the end of $t$ years. Solve the formula for $t$. Then determine how many years it will take for an investment to double in value at a 5 percent annual simple interest rate.

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. $250,000, original APR 3.95%, 2 points with a 0.25% discount per point.