Name: __________________
1
Class:
Date: _____________
You invest $500 at 10% interest compounded annually. How much is in the account after 4 years, assuming that you make no
subsequent withdrawal or deposit? Please round your answer to the nearest cent.
________
Problem code:
copc06.05.06.01
A sum of $700 is invested at an interest rate of 7
2
1 % compounded annually. How many years will it take until the sum
2
exceeds $1750?
________ years
Problem code:
copc06.05.06.02
3
At what interest rate (compounded annually) will a sum of $4400 grow to $6600 in 7 years? Please round your answer to the
nearest hundredth of percent.
________ %
Problem code:
copc06.05.06.03
4
A bank pays 8% interest compounded annually. What principal will grow to $7000 in 11 years? Please round your answer to the
nearest cent.
$
________
Problem code:
copc06.05.06.04
5
A sum of $2000 is placed in a savings account at 5% per annum.
How much is in the account after 1 year if the interest is compounded annually? Please round your answer to the nearest cent.
________
How much is in the account after 1 year if the interest is compounded semiannually? Please round your answer to the nearest cent.
________
How much is in the account after 1 years if the interest is compounded daily? (assuming 365 answer to the nearest cent.
________
Problem code:
copc06.05.06.06
PAGE 1
day year) Please round your
Name: __________________
6
Class:
Date: _____________
You place a sum of $900 in a savings account at 8% per annum compounded continuously.
Assuming that you make no subsequent withdrawal or deposit, how much is in the account after 1 year? Please round your answer
to the nearest cent.
________
When will the balance reach $1100? Round your answer to the nearest hundredth of a year.
________ years
Problem code:
copc06.05.06.12
7
Given a nominal rate of 12% per annum, compute the effective rate under continuous compounding of interest. Round your
answer to the nearest hundredth of percent.
________ %
Problem code:
copc06.05.06.18
PAGE 2
Name: __________________
8
Class:
A principal of $2000 is invested at 7% per annum compounded continuously. Estimate the doubling time and sketch a graph
showing how the amount increases with time.
a. doubling time = 7 years
d. doubling time = 9 years
b. doubling time = 4 years
e. doubling time = 10 years
..to be continued
PAGE 3
Date: _____________
Name: __________________
Class:
Date: _____________
continuation
c. doubling time = 8 years
Problem code:
copc06.05.06.27m
PAGE 4
ANSWER KEY
Homework 5.6 Math 3 Fall 2006, Bauerle
1. $732.05
2. 13
$2100
5. $2101.25
$2102.53
ANSWER KEY 6.
$974.96
2.51
Page 1
3. 5.96
4. 3002.18
7. 12.75
8.
e