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?

In a particular bank account, money doubles in 10 years. What is the annual interest rate compounded continuously?

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.

Use the simple interest formula $I=P \cdot r \cdot t$.

Rich borrowed $\$ 16,000$ for 12 years at simple interest to help pay for his schooling. If he repaid a total of $\$ 31,360$, at what interest rate did he borrow the money?

Each percent is an annual interest rate. In the formula $y=a \cdot b^x$, what value would you use for $b$?

$$8.75 \%$$

Find the present value of $59,673 due in 5 years at an interest rate of$8% / yea compounded continuously.

Obtain a current version of Publication 15 (Circular E), Employer's Tax Guide. Locate the tax rate table for married persons for annual payroll periods. Calculate the income tax and effective tax rate for a married taxpayer earning $140,000 with three withholding allowances.

Find the effec tive intere st rate for a loan of $\$3,500$ at $10\%$ interest compound ed quarterly.

John and Susan just opened savings accounts at two different banks. They each deposited $\$ 1,000$. John's bank pays simple interest at an annual rate of $10 \%$, whereas Susan's bank pays compound interest at an annual rate of $9.5 \%$. No interest will be taken out of the accounts for a period of three years. At the end of three years, whose balance will be greater and by how much (to the nearest dollar)?

Each percent is an annual interest rate. In the formula $y=a \cdot b^x$, what value would you use for $b$?

$$3.7 \%$$

determine the time necessary for P dollars to double when it is invested at interest rate r compounded annually. f = 10%

You are shopping for a $\$ 150,000,30$-year (360-month) loan to buy a house. The monthly payment is

$$m(r)=\frac{150,000(r / 12)}{1-(1+r / 12)^{-360}},$$

where $r$ is the annual interest rate. Suppose banks are currently offering interest rates between $6 \%$ and $8 \%$. (a). Use the Intermediate Value Theorem to show there is a value of $r$ in $(0.06,0.08)$ - an interest rate between $6 \%$ and $8 \%$-that allows you to make monthly payments of $\$ 1000$ per month. (b). Use a graph to illustrate your explanation to part (a). Then determine the interest rate you need for monthly payments of $\$ 1000$.

Compounding frequency and time value You plan to invest $2,000 in an individual retirement arrangement (IRA) today at a nominal annual rate of 8%, which is expected to apply to all future years.

b. What is the effective annual rate (EAR) for each compounding period in part a?

If $25,000 is invested for 15 years compounded quarterly and grows to$52,680. Find the interest rate to the nearest percent.