MAT 1160 Exam 1 Review

Suppose you deposit $1500 into a savings account that has an interest rate of 3.75%. Find the account balance after 15 years if the interest is simple.

• $2343.75

• $2623.42

• $2618.91

• $2632.58

Suppose you deposit $1500 into a savings account that has an interest rate of 3.75%. Find the account balance after 15 years if the interest is compounded semiannually.

• $2343.75

• $2623.42

• $2618.91

• $2632.58

Suppose you deposit $1500 into a savings account that has an interest rate of 3.75%. Find the account balance after 15 years if the interest is compounded every four months.

• $2343.75

• $2623.42

• $2618.91

• $2632.58

Suppose you deposit $1500 into a savings account that has an interest rate of 3.75%. Find the account balance after 15 years if the interest is compounded continuously.

• $2343.75

• $2623.42

• $2618.91

• $2632.58

Brynn takes out a 7% simple interest loan today that will be repaid 15 months from now with a payoff amount of $815.63. What amount is she borrowing?

• $397.87

• $887.00

• $1672.04

• $750.00

You take out a loan of $2450, agreeing to pay it back over 30 months at 4.6% add-on interest. What is the monthly payment for this loan?

• $5831.00

• $2731.75

• $91.06

• $194.37

For #38 on p. 749, find the average daily balance.

• $500.51

• $515.51

• $517.19

• $505.01

Determine the regular monthly payment of a $200,000 mortgage at 3.5% interest with a term of 15 years.

• $169.44

• $1694.44

• $142.98

• $1429.77

The type of interest in which accrued interest is periodically added to the principal and that total accrues interest for the next period is...

• Simple Interest

• Little to No Interest

• Compound Interest

• Waning Interest

Exemplified by credit cards and store charge cards, ______ loans do not require regular monthly payments and can have more borrowed against them before paying off the initial loan borrowed.