Page 2 - Exam 2 PDF v3 for students_Neat

 9. Find the maturity value (compound interest).
Principal Rate Compounded Time

$2,100 16% Quarterly 7.5 years

A) $6,911.25 B) $6,861.63 C) $6,790.88 D) $6,811.13

 10. Find the effective rate when the stated rate is 18% and the interest is compounded semiannually.

A) 18.81% B) 19.86% C) 19.06% D) 18.06%

 11. Determine the better investment: 4% compounded monthly or 4.2% compounded semiannually

A) 4%, compounded monthly B) 4.2% compounded semiannually

 12. Joan purchased a refrigerator for $900. She made a down payment of $70 and paid $91 a month for 11
months. Find the total installment price (the total of what she paid) of the refrigerator.

A) $1,082.00 B) $1,093.00 C) $1,071.00 D) $1,045.00

 13. A $2,000 loan is to be paid off in 24 monthly payments of $92.77. The borrower decides to pay off
the loan after 7 payments. Find the amount of interest saved.

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