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Problem 23

Find the APR of a bond that doubles its value in 12 years. Round your answer to the nearest hundredth of a percent.

Problem 24

Find the APR of a bond that doubles its value in 20 years. Round your answer to the nearest hundredth of a percent.

Problem 25

Advance America is a payday loan company that offers quick, short-term loans using the borrower's future paychecks as collateral. Advance America charges \(\$ 17\) for each \(\$ 100\) loaned for a term of 14 days. Find the APR charged by Advance America.

Problem 26

CashNet USA is a payday loan company that offers quick, short-term loans using the borrower's future paychecks as collateral. CashNet USA charges \(\$ 25\) for each \(\$ 100\) loaned for a term of 14 days. Find the APR charged by CashNet USA.

Problem 27

Find the future value of an investment of \(P=\$ 3250\) compounded annually with a \(9 \%\) APR for a term of (a) four years. (b) five and a half years.

Problem 28

Find the future value of an investment of \(P=\$ 1237.50\) compounded annually with a \(8.25 \%\) APR for a term of (a) three years. (b) four and a half years.

Problem 29

Between 1990 and 2010 the average annual inflation rate was \(3.5 \%\). Find the salary in 2010 dollars that would be equivalent to a \(\$ 25,000\) salary in 1990 .

Problem 30

Between 2000 and 2011 the average annual inflation rate was \(3 \%\). Find the salary in 2000 dollars that would be equivalent to a \(\$ 50,000\) salary in 2011 .

Problem 31

Consider a CD paying a \(3 \%\) APR compounded monthly. (a) Find the periodic interest rate. (b) Find the future value of the \(\mathrm{CD}\) if you invest \(\$ 1580\) for a term of three years.

Problem 32

Consider a CD paying a 3.6\% APR compounded monthly. (a) Find the periodic interest rate. (b) Find the future value of the \(\mathrm{CD}\) if you invest \(\$ 3250\) for a term of four years.

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