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Math 1064 Solutions to Quiz 5 $3,000 is invested into an account paying 4% simple interest

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Math 1064

Solutions to Quiz 5

1. $3,000 is invested into an account paying 4% simple interest. What is the value of the account in 6 years?
   1. $3,624 B. $3,720

1. 3. $3,778
   4. $4,120
   5. None of the above answers is correct
2. Find the present value of the future amount: $12,000 in 8 months; money earns 4 % simple interest. Please, round your answer to the nearest dollar.
   1. $11,688 B. $9,091

2. 3. $11,650
   4. $11,680
   5. None of the above answers is correct
3. Suppose you need to make a lump sum payment of $4,000 in 8 years. What amount should you deposit today at 2.6% interest compounded annually in order to have the exact amount needed to make the payment in 8 years? Please, round your answer to the nearest dollar.
   1. $3,311 B. $3,257

1. 3. $3,128
   4. $3,019
   5. None of the above answers is correct

4. A money market account has the annual interest rate of 4% and the interest is compounded monthly. Find the APY. Please, round your answer to the nearest hundredth of a percent.
   1. 48 %
   2. 4.08 %
   3. 4.07 %
   4. 4.12 %
   5. None of the above answers is correct
5. Suppose the amount P (P stands for principal or present value) is invested into an account that pays 5% interest compounded 6 times a year (once every two months). Which of the formulas in the answer choices correctly calculates the value of the account V (t) after t years?

   1. 

                 B. 

      

C.

           D. 

E. None of the above answers is correct

6. $2,000 is invested into a money market account which pays interest compounded quarterly. In three years, the value of the account grew to $2,274. Find the annual interest rate. Please, round your answer to the nearest tenth of a percent.
   1. 1.1 % B. 4.4 %

1. 3. 4.3 %
   4. 3.9 %
   5. None of the above answers is correct