91Ó°ÊÓ

What is the future value of a loan and how is it determined?

\(24 \%\) of what number is \(40.8\) ?

You deposit \(\$ 3000\) in an account that pays \(7 \%\) interest compounded semiannually. After 10 years, the interest rate is increased to \(7.25 \%\) compounded quarterly. What will be the value of the account after 16 years?

\(32 \%\) of what number is \(51.2\) ?

You deposit \(\$ 6000\) in an account that pays \(5.25 \%\) interest compounded semiannually. After 10 years, the interest rate is increased to \(5.4 \%\) compounded quarterly. What will be the value of the account after 18 years?

I planned to save \(\$ 5000\) in four years, computed the present value to be \(\$ 3846.153\), so I rounded the principal to \(\$ 3846.15 .\)

In 1777 , Jacob DeHaven loaned George Washington's army \(\$ 450,000\) in gold and supplies. Due to a disagreement over the method of repayment (gold versus Continental money), DeHaven was never repaid, dying penniless. In 1989 , his descendants sued the U.S. government over the 212 -year-old debt. If the DeHavens used an interest rate of \(6 \%\) and daily compounding (the rate offered by the Continental Congress in 1777), how much money did the DeHaven family demand in their suit? (Hint: Use the compound interest formula with \(n=360\) and \(t=212\) years.)

18 is what percent of 90 ?

You deposit \(\$ 5000\) in an account that earns \(5.5 \%\) simple interest. a. Express the future value in the account as a linear function of time, \(t\). b. Determine the slope of the function in part (a) and describe what this means. Use the phrase "rate of change" in your description.

Will you earn more interest in one year by depositing \(\$ 2000\) in a simple interest account that pays \(6 \%\) or in an account that pays \(5.9 \%\) interest compounded daily? How much more interest will you earn?