$A=P\left(1+\frac{r}{n}\right)^{nt}$  

Larissa deposits $450 into a savings account that earns 3.5% interest compounded quarterly. Using the compound interest formula, what is the balance after 7 years? 

Randy and Sandy each borrowed $13,000 for five years. Randy has a credit score of 650 and has an interest rate of 13.5%, while Sandy has a credit score of 710 and has an interest rate of 6.8%. Using the monthly payment formula, what is the difference between the men’s monthly payments?

An insurance company sells a twenty-year term life insurance policy with a face value of $300,000 to a 45-year old woman. Her annual premium is $1850. If the woman dies after paying premiums for 8 years, what is the insurance company’s gain or loss?

Margo wants to take a trip to China in 8 years. She knows she will need about $5,900. Using the formula for present value of a single deposit, how much should she deposit now into an account that pays 4.5% interest compounded daily, in order to meet her goal? Round to the nearest dollar.

Rob and Stacy want to save a total of $1,500,000 for retirement. Using the present value of a periodic deposit formula, how much should they deposit monthly into an account that pays 4.9% interest, compounded monthly, to meet their goal in 24 years?

The McLemores pay a monthly mortgage payment of $1238. They also pay a semi-annual property tax bill of $4,865 and semi-annual homeowner’s insurance of $1,650. The property tax and insurance are paid monthly into an escrow account to their lender. What is their monthly payment to their lender?

Mr. Serafin sells textbooks. He receives 4% on his first $5,000 in sales and 15% on the balance of his sales. If his sales in one month were $15,500, what would he earn in commission?

**Find 4% of 5000, then find 15% of the remaining amount (15500-5000=11500) then add those amounts together.

Rochelle receives 42K per year as an assistant fast food manager. Her benefits include $9,250 in health insurance, $1,350 in paid holidays, $6,500 in retirement contributions, $1,540 in paid vacation each year, and $850 in uniforms. What is her annual salary, including benefits?

Mr. Serafin sells textbooks. He receives 5% on his first $1,200 in sales and 20% on the balance of his sales. If his sales in one month were $15,500, what would he earn in commission?

**Find 5% of 1200, then find 20% of the remaining amount (15500-1200=14300) then add those amounts together.

Malena purchased $9,568 worth of stock and paid her broker a 0.5% fee. She sold the stock when the stock price increased to $13,928, using an online broker that charged $7 per trade. What are her net proceeds?

**Take the amount she got when she sold and subtract the amount she paid for the stock, subtract the first broker's fee (.005*9568), and subtract the 2nd broker's fee ($7).

Use the summary section of the monthly credit card statement below to calculate the finance charge.

Clara lives in a part of the country where there are droughts. Consequently, the water company increases the cost per ccf of water based on usage. The piecewise function shows the rate schedule.

If she used 210 ccf of water last month, what was she charged?

Jackson and Alexandria McFakename do not pay their credit card in full each month, so they incur finance charges. On their last credit card statement, the average daily balance is $1,375 and the monthly periodic rate is 1.85%. What should be the finance charge on the statement?

Jim was offered a job by Company A making 35K per year working every week for 40 hours a week. Company B offered Jim a position earning $22 per hour working every week for 35 hours a week. Which Company is offering to pay Jim more per year?

Dr. Oldman is thinking about retirement and decides to sail around the world once he retires. He buys a sailboat for $125,000. He borrows the money at an APR of 7.5% for five years. Using the formula for monthly payments, what will his total interest be?

Osama wants to borrow $13,000 to buy a used car. He examined his budget and decides that he can afford a payment of $200 a month. If his bank offers him an APR of 6.5%, how long should he borrow the money so he can afford his monthly payment?

Karina works part-time at a bakery earning $11.50 an hour. In the last five days, her time card shows that she worked 3.3, 2.9, 4.0, 3.5, and 2.1 hours. What is her gross pay for the five days?

Jerry buys a $7,200 motorcycle on a deferred payment plan. There is no down payment and no interest for eighteen months. Jerry must make a minimum payment of $175 a month. To avoid a retroactive APR of 21%; he must pay the balance in full before the 18 months has passed. If he pays $175 each month, how much should he pay the last month to avoid the interest charges?

**Figure out how much he pays for 17 months (17*175) then subtract that from the amount the motorcycle cost.