# Math 104 Alegbra Applications

*label*Algebra

*timer*Asked: Aug 8th, 2014

**Question description**

Calculate the amount of simple interest earned.

$1,000 at 15% for 40 years

$

Find the future value, using the future value formula and a calculator. (Round your answer to the nearest cent.)

$857 at 5.5% compounded quarterly for 4 years

$

Find the present value, using the present value formula and a calculator. (Round your answer to the nearest cent.)

Achieve $225,500 at 8.35% compounded continuously for 8 years, 125 days.

$

If $38,500 is invested at 6.2% for 30 years, find the future value if the interest is compounded the following ways. (Round your answers to the nearest cent.)

(a) annually

$

(b) semiannually

$

(c) quarterly

$

(d) monthly

$

(e) daily

$

(f) every minute (*N* = 525,600)

$

(g) continuously

$

(h) simple (not compounded)

$

Suppose that an insurance agent offers you a policy that will provide you with a yearly income of $70,000 in 30 years. What is the comparable salary today, assuming an inflation rate of 5% compounded annually? (Round your answer to the nearest cent.)

$

Convert the credit card rate to the APR.

Oregon, 1 and ¼ % per month

%

Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answers to the nearest cent.)

$200 balance, 19%, $50 payment

(a) previous balance method

$

(b) adjusted balance method

$

(c) average daily balance method

$

Assume the car can be purchased for 0% down for 60 months (in lieu of rebate).

A car with a sticker price of $42,250 with factory and dealer rebates of $5,100

(a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)

$

(b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)

$

(c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.)

%

(d) State whether the 0% APR or the 2.5% add-on rate should be preferred.

0% APR or 2.5% add-on rate

For the car loan described, give the following information.

A newspaper advertisement offers a $4,500 used car for nothing down and 36 easy monthly payments of $156.62.

(a) amount to be paid

$

(b) amount of interest

$

(c) interest rate (Round your answer to two decimal places.)

%

(d) APR (rounded to the nearest tenth percent)

%

Karen and Wayne need to buy a refrigerator because theirs just broke. Unfortunately, their savings account is depleted, and they will need to borrow money in order to buy a new one. Sears offers them an installment loan at 13% (add-on rate). If the refrigerator at Sears costs $1,538 plus 5% sales tax, and Karen and Wayne plan to pay for the refrigerator for 3 years, what is the monthly payment? (Round your answer to the nearest cent.)

$

Find the amount of periodic payment necessary for the deposit to a sinking fund. (Round your answer to the nearest cent.)

$

Amount Needed | Frequency | Rate | Time |

$50,000 | semiannually | 15% | 20 yr |

Find the monthly payment for the loan. (Round your answer to the nearest cent.)

$900 loan for 12 months at 11%

$

Find the monthly payment for the loan. (Round your answer to the nearest cent.)

A $112,000 home bought with a 20% down payment and the balance financed for 30 years at 11.5%

$

Find the monthly payment for the loan. (Round your answer to the nearest cent.)

Finance $650,000 for a warehouse with a 12.50% 30-year loan

$

Classify the financial problem. Assume a 11% interest rate compounded annually.

Find the value of a $1,000 certificate in 3 years.

ordinary or annuity or amortization or present value or future value or sinking fund

Answer the question. (Round your answer to the nearest cent.)

$

The amount to be financed on a new car is $9,500. The terms are 8% for 3 years. What is the monthly payment?

(a) State the type.

amortization or sinking fund or ordinary or annuity or present value or future value

(b) Answer the question. (Round your answer to the nearest cent.)

$

If an apartment complex will need painting in 3 and half years and the job will cost $55,000, what amount needs to be deposited into an account now in order to have the necessary funds? The account pays 10% interest compounded semiannually.

(a) State the type of the problem.

future or value or ordinary or annuity or sinking fund or present value or amortization

(b) Answer the question. (Round your answer to the nearest cent.)

$