Question

1. -15 points Find the requested value and tell what the other numbers represent. Find P: 11716 = P + P(0.04X4) Need Help? Read It Watch It Talk to a Tutor 2. -12 points $14,000 is invested for 4 years at an annual simple interest rate of 12%. (a) How much interest will be earned? (b) What is the future value of the investment at the end of the 4 years? Need Help? Read It Watch It Talk to a Tutor 3. 1/1 points Previous Answers If you borrow $700 for 6 months at 12% annual simple interest, how much must you repay at the end of the 6 months? $ 742 Need Help? Read It Talk to a Tutor 4. -/1 points If you lend $3400 to a friend for 6 months at 8% annual simple interest, find the future value of the loan. Need Help? Read It Master It Talk to a Tutor 5. -14 points Find the requested value and identify each of the other values as the periodic rate, the number of periods, the principal, or the future value. Find S: S = 2500(1 + 0.02)12. (Round your answer to two decimal places.) S = 2500: periodic rate number of periods principal future value 0.02: periodic rate number of periods principal future value 12: periodic rate number of periods principal future value Need Help? Read It Talk to a Tutor

Answer 1

1. 11716 = P + P(0.04)(4)

11716 = P + 0.16 P

1.16P = 11716

Therefore, P = 11716/1.16 = 10100

A = 11716

I = A-P = 11716 - 10100 = 1616

r = 0.04 = 4%

t = 4 years

2. 14000 is invested for 4 years at annual simple interest rate of 12%

P = 14000, r = 12%, t = 4 years

Interest earned = 0.12*4*14000 = 6720

Interest earned = 6720

Future value = Principle + amount earned = 14000+6720 = 20720

Future value of the investment at the end of 4 years = 20720

3. annual interest rate = r = 8%, Principle = P = 3400, time period = 6 months = 0.5 years

Interest earned = P*r*t = 3400*0.08*0.5 = 170

Future value of the loan = 3400 + 170 = 3570

4. This is an example of compound Interest

S = 2500(1+0.02)¹² = 3170.60

2500: Principal

0.02: Periodic rate

12: number of periods