Page 516 - Basic College Mathematics with Early Integers

S E C T I O N 6.6 I PERCENT AND PROBLEM SOLVING: INTEREST 493

21. $10,000 is compounded semiannually at a rate of 9% 22. $3500 is compounded daily at a rate of 8% for
for 20 years. 10 years.

23. $2675 is compounded annually at a rate of 9% for 24. $6375 is compounded semiannually at a rate of 10%
1 year. for 1 year.

25. $2000 is compounded annually at a rate of 8% for 26. $2000 is compounded semiannually at a rate of 8%
5 years. for 5 years.

27. $2000 is compounded quarterly at a rate of 8% for 28. $2000 is compounded daily at a rate of 8% for 5 years.
5 years.

Objective Solve. See Example 6.

29. A college student borrows $1500 for 6 months to 30. Jim Tillman borrows $1800 for 9 months. If the
pay for a semester of school. If the interest is $61.88, interest is $148.90, find his monthly payment.
find the monthly payment.

31. $20,000 is borrowed for 4 years. If the interest on the 32. $105,000 is borrowed for 15 years. If the interest on
loan is $10,588.70, find the monthly payment. the loan is $181,125, find the monthly payment.

Review

Find the perimeter of each figure. See Section 1.3.

33. 34. 18 centimeters
Rectangle 6 yards
Triangle
16 12
10 yards centimeters centimeters

35. 36.
Regular
pentagon— Square 21 miles
All sides
are same 7 meters
length

Concept Extensions

37. Explain how to look up a compound interest factor 38. Explain how to find the amount of interest in a
in the compound interest table. compounded account.

39. Compare the following accounts:Account 1: $1000 is invested for 10 years at a simple interest rate of 6%.Account
2: $1000 is compounded semiannually at a rate of 6% for 10 years. Discuss how the interest is computed for each
account. Determine which account earns more interest.Why?