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CALCULATING INTEREST Question 1: Find the principal if $245 in interest is due after 10 months at 7%. Question 2: The Fergusons want to purchase their first home and need $14,300 for a down payment. They can save $1,025 per quarter. If they deposit this amount in an account paying 3% interest compounded quarterly, how long will it be before they can purchase a home? (Solution should be entered in years accurate to the hundredths decimal place) Question 3: If you borrowed $10,000 for 2 years at 5% interest compounded quarterly, how much would you have to pay back at the end of that time (assume one lump sum payment at the end)? Question 4: What is the effective interest rate for 8% interest compounded daily? Question 5: A company invests $4,000 a quarter for 5 years at 12% interest. At the end of that time, it moves the final value into a different investment, to which it then adds $330 a month for the next 5 years—this time at 10% interest. How much does it have at the end of 10 years? Question 6: Howard University decides to accumulate funds in order to build a building in 6 years. It deposits $35,000 at the end of every month in an account earning 6% compounded monthly. How much would it have saved at the end of that time? Question 7: How long will it take Gabriella to save $250,000 if she puts $475 a month into an annuity drawing 7.5% interest?

          CALCULATING INTEREST

Question 1: Find the principal if $245 in interest is due after 10 months at 7%.

Question 2: The Fergusons want to purchase their first home and need $14,300 for a down payment. They can save $1,025 per quarter. If they deposit this amount in an account paying 3% interest compounded quarterly, how long will it be before they can purchase a home? (Solution should be entered in years accurate to the hundredths decimal place)

Question 3: If you borrowed $10,000 for 2 years at 5% interest compounded quarterly, how much would you have to pay back at the end of that time (assume one lump sum payment at the end)?

Question 4: What is the effective interest rate for 8% interest compounded daily?

Question 5: A company invests $4,000 a quarter for 5 years at 12% interest. At the end of that time, it moves the final value into a different investment, to which it then adds $330 a month for the next 5 years—this time at 10% interest. How much does it have at the end of 10 years?

Question 6: Howard University decides to accumulate funds in order to build a building in 6 years. It deposits $35,000 at the end of every month in an account earning 6% compounded monthly. How much would it have saved at the end of that time?

Question 7: How long will it take Gabriella to save $250,000 if she puts $475 a month into an annuity drawing 7.5% interest?

Added by Morgan E.

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