Calculate the total amount in each account.See Example 5.- Suppose $2,000 is deposited in a savings account that
pays 3% interest, compounded quarterly. How much
money will be in the account in one year? - Suppose $3,000 is deposited in a savings account that
pays 2% interest, compounded quarterly. How much
money will be in the account in one year? - If $5,400 earns 4% interest, compounded quarterly,
how much money will be in the account at the end of
one year? - If $10,500 earns 8% interest, compounded quarterly,
how much money will be in the account at the end of
one year?
Use a calculator to solve the following problems.See Example 6. - A deposit of $30,000 is placed in a savings account that
pays 4.8% interest, compounded daily. How much
money can be withdrawn at the end of 6 years if the
principal is to remain in the bank? - A deposit of $12,000 is placed in a savings account that
pays 5.6% interest, compounded daily. How much
money can be withdrawn at the end of 8 years if the
principal is to remain in the bank? - If 8.55% interest, compounded daily, is paid on a
deposit of $55,250, how much money will be in the
account at the end of 4 years? - If 4.09% interest, compounded daily, is paid on a
deposit of $39,500, how much money will be in the
account at the end of 9 years?
APPLICATIONS- RETIREMENT INCOME A retiree invests $5,000
in a savings plan that pays a simple interest rate of
6%. What will the account balance be at the end of
the first year? - INVESTMENTS A developer promised a return of
8% simple interest on an investment of $15,000 in her
company. How much could an investor expect to
make in the first year?
45. SMOKE DAMAGE The owner of a café borrowed
$4,500 for 2 years at 12% simple interest to pay for
the cleanup after a kitchen fire. Find the total amount
due on the loan.
46. ALTERNATIVE FUELS To finance the purchase of a
fleet of natural-gas–powered vehicles, a city borrowed
$200,000 for 4 years at a simple interest rate of 3.5%.
Find the total amount due on the loan.
47. SHORT-TERM LOANS A loan of $1,500 at 12.5%
simple interest is paid off in 3 months. What is the
interest charged?
48. FARM LOANS An apple orchard owner borrowed
$7,000 from a farmer’s co-op bank. The money was
loaned at 8.8% simple interest for 18 months. How
much money did the co-op charge him for the use of
the money?
49. MEETING PAYROLLS In order to meet end-of-the-
month payroll obligations, a small business had to
borrow $4,200 for 30 days. How much did the business
have to repay if the simple interest rate was 18%?
50. CAR LOANS To purchase a car, a man takes out a
loan for $2,000 for 120 days. If the simple interest rate
is 9% per year, how much interest will he have to pay
at the end of the 120-day loan period?
51. SAVINGS ACCOUNTS Find the interest earned on
$10,000 at for 2 years. Use the table to organize
your work.
7 14 %
568 Chapter 6 Percent
fromCampus to Careers
Loan Officer- A member of a credit
union was loaned $1,200
to pay for car repairs. The
loan was made for 3 years
at a simple interest rate of
5.5%. Find the interest due
on the loan.
Ariel Skelley/Getty Images- REMODELING A homeowner borrows $8,000 to
pay for a kitchen remodeling project. The terms of
the loan are 9.2% simple interest and repayment in
2 years. How much interest will be paid on the loan?
Pr t I- TUITION A student borrows $300 from an
educational fund to pay for books for spring
semester. If the loan is for 45 days at annual
interest, what will the student owe at the end of the
loan period? - LOAN APPLICATIONS Complete the following
loan application.
Loan Application Worksheet- Amount of loan (principal) _____
- Length of loan (time) __
- Annual percentage rate ____
- Interest charged __
- Total amount to be repaid __
- Check method of repayment:
1 lump sum monthly payments
Borrower agrees to pay ______ equal
payments of __________ to repay loan.$1,200.00
2 YEARS8%24(simple interest)