Cycle 23 - Simple & Compound Interest

You arrange for a 6-month bank loan of $5,500 at an annual interest rate of 4%. Find the maturity value of the loan. Maturity value is the ending balance.

Frank took out a 5-year loan of $48,000 with an annual interest rate of 5%. Calculate his monthly payment.

Find the simple interest Mark owes on a 4-year student loan of $36,000 with an annual interest rate of 6%.

(a)  

A credit card company charges a customer 1.8% per month on the unpaid balance of charges on a credit card. What is the finance charge in a month in which the customer has an unpaid balance of $1,205.62? (Finance Charge is the same as Interest.)

Jeff has an unpaid balance of $455.79 on his credit card that charges 3.2% interest per month. If he does not pay anything on it for 1 month and is charged a $10 late fee, how much will Jeff owe?

For retirement, Mike invested $2,500 in an account that pays 6% annual interest, compounded quarterly. Find the value of his investment after 10 years.

An investment of $700 pays 4% annual interest, compounded semiannually. What is the INTEREST earned in 5 years? (You will have to subtract to get the INTEREST.) Round to the nearest cent.

(a)  

A bank pays 8% annual interest, compounded daily, on savings deposits. Find the value after 5 years of $500 deposited in the account. (Use 365 for daily.)