Work the following problems neatly and completely. Upload your solutions. They may be any combination of
image, Word, or PDF files. Basic calculations need not be shown step by step, but explanation of the solution
is necessary. [Problem points in brackets.]
1. On April 30, 1803, the United States purchased 827,000 square miles of land from France for $15 million. If
the value of the Louisiana Purchase grew with a simple interest rate of 5% annually, what would the value of
one square mile be in 2023? [5]
2. The national debt is 33.63 trillion dollars (November 2023). If the interest rate is 5% per annum, what is the
daily interest amount on the national debt? [5]
3. Suppose that $1000 is deposited in an account. What annual interest rate would give $2000 accumulated
money in 2 years if the compounding is monthly? (Show your algebra on this one.) [10]
4. A guy bought a thing, amortizing a loan for 5 years at 7.5%. and his monthly payment was $475. After
making these payments for 3 years, he wants to pay off the balance. How much must he pay? [10]
5. Timéo Blanche decides to sock away $186 per month in account earning 4.8% annual interest, compounded
monthly for 12 years, then take off travelling around for 15 months. How much will Timéo be able to withdraw
from the account each month of that time? [10]
6. If the interest rate is 5.4%, which is better getting $400 per month for 5 years or $500 per month for 4 years?
Explain why. [10]