University:
University of North Georgia
Course:
MATH 1001 | Quantitative Skills and Reasoning
Academic year:

2021
Views:

147

Pages:

2
Author:

larbiwxcvbn

Pre-Calculus 1. 2. 4.4-4.5 Applications D1 Worksheet Name:________________________ A man invests $5,000 in an account that pays 8.5% interest per year, compounded quarterly. a. Find the amount after 3 years. b. How long will it take for the investment to double? You can use the Rule of 72 to help estimate initially, but find the exact time using the compound interest formula. A woman invests $6,500 in an account that pays 6% interest per year, compounded continuously. a. What is the amount after 2 years? b. How long will it take for the amount to be $8,000? 3. Nancy wants to invest $4,000 in a saving certificate that earns an interest rate of 9.75% per year, compounded semiannually. How long a time period will it take in order to save an amount of $5,000. 4. A sum of $1,000 was invested for 4 years, and the interest was compounded semiannually. If this sum amounted to $1,435.77 in the given time, what was the interest rate? 5. How long will it take $1,000 to triple if it is invested at an annual interest rate of 5.5% compounded continuously? Round to the nearest year. 6. How long will it take you to triple your money if you invest it at a rate of 6% compounded annually? Round to the nearest year. 7. A gold coin appreciated in value from $100 to $238 in 8 years. Find the average annual rate of appreciation. 8. A tractor that 4 years ago cost $8,000 is now worth only $3,200. Find the average annual rate of depreciation. 9. How long will it take a baseball card to increase in value from $50 to $500 if its average annual rate of appreciation is 16%? 10. The value of a car in dollars 𝑡 years from now is 𝑉(𝑡) = 4000(0.79)𝑡 . 11. a. What is the annual rate of depreciation (the rate at which the car loses value?) b. In how many years will the value of the car be approximately 30% what it is now? With which plan would an investor earn more, Plan A or Plan B? Plan A: Plan B: 12. A 8% annual rate compounded quarterly over a 5-year period A 7.5% annual rate compounded daily over a 5-year period One hundred dollars deposited in a bank that compounds interest quarterly yields $107.50 over 1 year. a. Find the annual interest rate b. Find the effective annual yield Answers: 1a. $6435.09 1b. 8.24 yrs 2a. $7328.73 2b. 3.46 yrs 3. 2.34 yrs 4. 9.25% 5. 19.97 yrs 6. 18.85 yrs 7. 11.45% 8. 20.47% 9. 15.51 yrs 10a. 21% 10b. 5.11 yrs 11. Plan A 12a. 7.3% 12b. 7.5%

Math Applications D1 Worksheet Answers

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