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?

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.

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 = 3.75%$

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

(a) increase collision frequency

(b) increase collision energy

(c) effective collision orientation

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 = 2.5%$

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

The formula

$$I_t=\frac{I_f}{1-T}$$

gives the taxable interest rate $I_t$ equivalent to the tax-free interest rate $I_f$ for a person in the $(100 \cdot T) \%$ tax bracket. Solve for $T$.

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?

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?

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?

For the following exercise,

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

A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market rate of 7%. Interest is paid annually. What is the amount of interest the bondholders will receive at the end of the year?

Suppose that $10,000 is invested at continuous rate r and grows to$17,160 in 9 years. Find the interest rate r.

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