Reference no: EM131483185

1. A simple discount loan has a face value of $1000. The initial investment was $700, and interest was set at 7.5% per year.

What was the period of the loan? Round to the nearest year.

2. A loan is taken out for $250, with interest compounding monthly. If at the end of 3 years the loan is worth $325, to the nearest 100th of a percent, what is i?

3. A simple interest loan has a principal value of $1000 and an annual interest rate of 10%. A compound interest loan has a principal value of $1000 and an annual interest rate of 5%.

Assuming no loan payments are made, how many years will it take before the compound loan is worth more than the simple loan?

4.  A person opens an account hoping to have $50,000 at the end of 5 years. Assuming it starts with $0 and 6% interest compounding monthly how much should she deposit each month in order to reach her goal? Round to the nearest dollar.

5. A person deposited $1000 into a new investment at the end of 2001, then $1500 in 2002, $1000 in 2003, $1500 in 2004, and so on until 2015. Each payment is made at the end of the year.

Assuming 6.5% annual interest, how much would the investment be worth at the end of 2015? Round to the nearest dollar.