Assessment
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1. Find the simple interest on a $400 investment made for 5 years at an interest rate of 70/0/year. What is the accumulated amount? E) A) The simple interest is $140, the accumulated amount is $540. B) The simple interest is $115, the accumulated amount is $515. C) The simple interest Is $120, the accumulated amount is $520. ID) The simple interest is $125, the accumulated amount is $555, 2. If the accumulated amount is $3,720 at the end of 3 years and the simple rate of interest is 8%/year, what is the principal? El A) The principal is $3,500, B) The principal is $3,360. C) The principal is $3,000. El ID) The principal is $3,200. 3. Find the accumulated amount A if the principal P = $2,000 is invested at the interest rate of r = 6% per year for t = 6 years, compounded annually. n A) The accumulated amount is $3,508,28, B) The accumulated amount is $3,194.16. 0 C) The accumulated amount is $2,837,04. 0 ID) The accumulated amount is $2,708.89. 4. Find the accumulated amount A if the principal P = $11,000 is invested at the interest rate of r = 5% per year for t = 5.5 years, compounded quarterly. A) The accumulated amount is $14,585.32. B) The accumulated amount is $13,785.93. C) The accumulated amount is $14,100.05. El 0) The accumulated amount is $14,457,17. 5. Determine the simple interest rate at which $1,500 will grow to $1,550 In the. 8 months. Round your answers to the nearest tenth of percent. A) The interest rate is 5%/year. El B) The interest rate is 4.33%/year. E] C) The interest rate is 4.76%/year. D) The interest rate is 66.67%/year. E) The interest rate is 3.06°/0/year, 6. Find the present value of $40,000 due in 4 years at the given rate of interest 8%/year compounded monthly. A) The present value is $28,948.67. B) The present value is $29,433.94. C) The present value is $29,076.82. ID) The present value is $29,748.06. 7. In order to help finance the purchase of a new house, the Abdullahs have decided to apply for a short-term loan (a bridge loan) in the amount of $140,000 for a term of 1 mo. If the bank charges simple interest at the rate of 12%/year, how Much will the Abdullahs owe the bank at the end of the term? 0 A) $141,400 B)
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