# Chapter 5: Chapter 5

Problem 14

Calculate the present value of an investment that will be worth $$\$ 1,000$$ at the stated interest rate after the stated amount of time. 5 years, depreciating \(4 \%\) each year

Problem 15

Find the effective annual interest rates of the given annual interest rates. Round your answers to the nearest \(0.01 \%\). \(5 \%\) compounded quarterly

Problem 16

Compute the specified quantity. Round all answers to the nearest month, the nearest cent, or the nearest \(0.001 \%\), as appropriate. Simple Loans Your total payment on a 4 -year loan, which charged \(9.5 \%\) simple interest, amounted to \(\$ 30,360\). How much did you originally borrow?

Problem 16

Find the effective annual interest rates of the given annual interest rates. Round your answers to the nearest \(0.01 \%\). \(5 \%\) compounded monthly

Problem 17

Find the effective annual interest rates of the given annual interest rates. Round your answers to the nearest \(0.01 \%\). \(10 \%\) compounded monthly

Problem 17

Compute the specified quantity. Round all answers to the nearest month, the nearest cent, or the nearest \(0.001 \%\), as appropriate. Bonds A 5-year bond costs \(\$ 1,000\) and will pay a total of \(\$ 250\) interest over its lifetime. What is its annual interest rate?

Problem 18

Find the effective annual interest rates of the given annual interest rates. Round your answers to the nearest \(0.01 \%\). \(10 \%\) compounded daily (assume 365 days per year)

Problem 18

Compute the specified quantity. Round all answers to the nearest month, the nearest cent, or the nearest \(0.001 \%\), as appropriate. \mathrm{\\{} B o n d s ~ A ~ 4 - y e a r ~ b o n d ~ c o s t s ~ \(\$ 10,000\) and will pay a total of \(\$ 2,800\) in interest over its lifetime. What is its annual interest rate?

Problem 19

Find the effective annual interest rates of the given annual interest rates. Round your answers to the nearest \(0.01 \%\). \(10 \%\) compounded hourly (assume 365 days per year)

Problem 2

Compute the simple interest for the specified period and the future value at the end of the period. Round all answers to the nearest cent. $$ \$ 1,000 \text { is invested for } 10 \text { years at } 4 \% \text { per year. } $$