### How much must he give the bank

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1. A bank offers 4.00% on savings accounts. What is the effective annual rate if interest is compounded semi-annually?

2. A bank offers 7.00% on savings accounts. What is the effective annual rate if interest is compounded quarterly?

3. A bank offers 7.00% on savings accounts. What is the effective annual rate if interest is compounded monthly?

4. A bank offers 10.00% on savings accounts. What is the effective annual rate if interest is compounded daily?

5. A bank offers 9.00% on savings accounts. What is the effective annual rate if interest is compounded continuously?

6. Assume a bank offers an effective annual rate of 5.53%. If compounding is quarterly what is the APR?

7. Assume a bank offers an effective annual rate of 6.08%. If compounding is monthly what is the APR?

8. Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 72.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after he fully retires on the day he turns 72.0, he will wants to have \$3,490,249.00 in his retirement account. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be? Assume a 8.00% interest rate.

9. Derek borrows \$262,739.00 to buy a house. He has a 30-year mortgage with a rate of 5.85%. The monthly mortgage payment is \$________.

10. Derek borrows \$296,186.00 to buy a house. He has a 30-year mortgage with a rate of 4.07%. After making 133.00 payments, how much does he owe on the mortgage?

11. Derek borrows \$43,176.00 to buy a car. He will make monthly payments for 6 years. The car loan has an interest rate of 5.79%. After a 12.00 months Derek decides to pay off his car loan. How much must he give the bank?

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