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

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

Suppose you deposit 100 dollars in Account A with a simple interest rate of 3.4 percent, and 300 dollars in Account B with a simple interest rate of 1.8 percent. One year later, you get a bank statement that shows the interest for Account A is 3.40 dollars, and the interest for Account B is 540.00 dollars. What may have been the bank's error?

Find the number of years it would take for $1200 to earn simple interest of$324 at an annual interest rate of 6% per year.

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?

Find the time required for a $1000 investment to (a) double at interest rate r, compounded continuously, and (b) triple at interest rate r, compounded continuously. Round your results to two decimal places.$r = 6%$

To make CDs look more attractive than they really are, some banks advertise that their rates are higher than their competitors’ rates; however, the fine print says that the rate is a simple interest rate. If a person deposits $10,000 at 10% per year simple interest, what compound interest rate would yield the same amount of money in 3 years?

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

A sum of $1000 was invested for 4 years, and the interest was compounded semiannually. If this sum amounted to$1435.77 in the given time, what was the interest rate?

Reggie invests $12,000, part at 7% annual interest and part at 8.5% annual interest. How much is invested at each rate if Reggie’s total annual interest is$900?

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

Work the following applied problem.

Which of these 20-year zero-coupon bonds will be worth more at maturity: one that sells for $4510, with a 6.1% interest rate, or one that sells for$5809, with a 4.8% interest rate?

The interest rate on a car loan affects the monthly payment. The function that relates the monthly payment for a 5 -year loan (60-month loan) to the monthly interest rate is given by

$$P(x)=\frac{C x}{\left[1-\frac{1}{(x+1)^{60}}\right]}$$

where $x$ is the monthly interest rate (as a decimal), $C$ is the loan amount, and $P(x)$ is the monthly payment.

Simplify the complex fraction.

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