The Fort House Tea Room borrowed $17,500 for renovations at a simple interest rate of 6.85% for 4 years. The interest is to be paid annually. Find the amount of each annual interest payment.

Kathy borrowed $800 at 6% interest. The amount of interest paid was$144. What was the length of the loan?

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.

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?

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%.

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%.

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%

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 $1$-point increase in the interest rate.

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?

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?

When a transverse wave travels through a medium, which way does matter in the medium move? A. backward B. all directions C. at right angles to the direction the wave travels D. in the same direction the wave travels

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, $r$.

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

$20,000 bond with coupon rate 4.5% that matures in 8 years; current interest rate is 5.9%.