The total amount of money in a bank account paying compound interest can be determined by the formula $A=P\left(1+\frac{r}{n}\right)^{n t}$, where $P$ is the principal (amount deposited), $r$ is the annual rate of interest expressed as a decimal, $n$ is the number of times the interest is compounded in one year, and $t$ is the time in years. Determine the total amount of money in an account at the end of 4 months if the original sum deposited was $\$ 2550$, the interest rate is $8 \%$, compounded 4 times a year, and no money is deposited or withdrawn.

Use the key terms to complete the following sentence:

The __________ is the rate banks are charged to borrow money from the Fed.

The money raised and spent (both in millions of U.S. dollars) by all congressional campaigns for 8 recent 2 -year periods are shown in the table. The data can be modeled by the regression equation

$\hat{y}$=0.943 x+21.541.

Use the data to find the

a) coefficient of determination and interpret the result,

b) standard error of estimate $s_e$ and interpret the result.

Leroy borrowed $8250 to be repaid after 3 years at an annual simple interest rate of 7.25%. How much interest will be due after 3 years? How much will Leroy have to repay?

Fred’s credit union offers a simple interest home equity loan that uses a daily rate. For such loans, interest is computed using the following formula: (Loan balance) (daily rate)(days between payments) If Fred borrows $15,000 at a daily periodic rate of 0.000144 and he pays the loan off in one single payment of$18,153.60, how long was the term of the loan?

Toward the end of the twentieth century, the U.S. government wanted to save money by closing a small portion of its domestic military installations. While many people agreed that saving money was a desirable goal, people in areas potentially affected by a closing soon reacted negatively. Congress finally selected a panel whose task was to develop a list of installations to close, with the legislation specifying that Congress could not alter the list. Since the foal was to save money, why was this problem so hard to solve?

The cost of the yacht was___. The wealthy sheik wanted the finest boat that money could buy. (invulnerable; irrelevant)

Research and present a group report on state lotteries. Include answers to some or all of the following questions. As always make the report interesting and informative. Which states do not have lotteries? Why not? How much is spent per capita on lotteries? What are some of the lottery games? What income groups spend the greatest amount of money on lotteries? If your state has a lottery, what does it do with the money it makes? Is the way the money is spent what was promised when the lottery first began?

Use the following amortization formula: $P = \frac { r \cdot M } { 1 - \left( 1 + \frac { r } { n } \right) ^ { - n t } } \div n$ where P = the payment, r = the annual interest rate, M = the mortgage amount, t = the number of years, and n = the number of payments per year. What is the monthly payment on a mortgage of $120,000 with a 6% interest rate for 20 years? How much interest will be paid over 20 years?

Compute Topp Company’s price-earnings ratio if its common stock has a market value of $20.54 per share and its EPS is$3.95. Its key competitor, Lower Deck, has a PE ratio of 9.5. For which company does the market have higher expectations of future performance?

Bulls Eye Stores constructed new stores during the current year. The average balance in the Construction-in-Process account excluding the current year’s capitalized interest costs was $3,400,000. Bulls Eye Stores engaged in borrowing directly related to these stores in the amount of$2,000,000, which carries an interest rate of 6%. Bulls Eye Stores has other borrowing outstanding totaling $8,000,000 at an average interest rate of 7%. Compute the amount of interest capitalized in the Construction-in-Process account during the current year.

Ronald Allerton has just approached a venture capitalist for financing for a new business venture, the development of a local ski hill. On July 1, 2013, Ronald was loaned $140,000 at an annual interest rate of 8%. The loan is repayable over 5 years in annual installments of$35,064, principal and interest, due each June 30. The first payment is due June 30, 2014. Ronald uses the effective-interest method for amortizing debt. The ski hill company’s year-end will be June 30.

Instructions

(b) Prepare all journal entries for Ronald Allerton for the first 2 fiscal years ended June 30, 2014, and June 30, 2015. (Round all calculations to the nearest dollar.)

Answer these questions about the interest calculation s.

Which account earned the most inter est, and how much more did it earn? Now move the cursor to cell C4, which holds the Account B interes t rate. Enter a new interest rate of 4.1 % without the percent symbol.

At the start of 2010 Karim had $\$ 5000$ to invest. He decided to invest part of the money in a savings account that offered $1.5 \%$ simple interest per year. He added $\$ 1000$ to this amount and fixed it for 10 years in bonds that offered $2.5 \%$ compound interest per year. The rest of the money he invested in shares.

At the end of the first year, Karim decided to sell the shares at their current value and reinvest the money in the savings account. Evaluate the total value of his investment at the end of 2020.