Page 78 - Senior Math

Solve each of the following.
1) Shannon invested $20,000 at 4% compounded quarterly. How much would her investment be worth in 3 years?
2) The first credit card that you got charges 12.49% interest to its customers and compounds that interest monthly. Within one day of getting your first credit card, you max out the credit limit by spending $1,200. If you do not buy anything else on the card and you do not make any payments, how much money would you owe the company after 6 months?
3) Eric invested $500 at 3% compounded daily and left it untouched for 40 years. How much would it be worth at the end of the 40 years? (Banks use 360 days for one year)
4) William wants to have a total of $4000 in two years so that he can put a hot tub on his deck. He finds an account that pays 5% interest compounded monthly. How much should William put into this account so that he’ll have $4000 at the end of two years?
5) A critically ill patient decides to freeze himself until a cure for his illness is found. If he deposits $50,000 into an account that pays 4% compounded continuously, how much will he have if he is reanimated 150 year later?
6) Suppose the company that froze the patient above requires a payment of $500 per year for the first 50 years and $1000 a year for each year beyond 50, payable upon reanimation. How much money will the above patient have after reanimation?
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