costs of attending the first year of a four-year undergraduate program ... How much more will Mary pay in interest on a 36-month loan than on a 24-mon...
NAME _____________________________________________ DATE ____________________________ PERIOD _____________
Chapter 10 Review For Exercises 1–3, use the information provided. 1
1. Jessie deposited $5,000 in to an account that earns 34% simple annual interest. Calculate the interest Jessie will earn after five years. ________________________________________________________________________________ 1
2. Donald deposited $5,000 in to an account that earns 34% compound annual interest. Determine the total account balance after five years. Then determine how much Donald will have earned in interest.
3. Compare the simple interest and compound interest earned in Exercises 1 and 2. Which earned more?
How much more? 1
4. $3,600 is deposited in to an account that earns 42% compound interest annually for 4 years. Calculate the interest earned. Round to the nearest cent. ____________________________________________________________________________ Four-Year Program Estimated Costs (per year)
For Exercises 5 and 6, refer to the table, which gives the estimated costs of attending the first year of a four-year undergraduate program at a university.
Tuition and Fees
$17,400
5. What is the total estimated cost to attend the first year of this university?
6. Neilson’s family invests $9,000 in an accout that earns 4.5% annual interest. They deposit an additional $400 per month for 4 years. Will the value of the account be enough to pay for at least the first year of college?
Course 3 • Chapter 10 Personal Financial Literacy
PERIODIC DEPOSIT CALCULATOR 9,000 Beginning Balance: $ 400 Additional Monthly Deposit:$ 4.5 Interest Rate: % per year 4 Number of Years CALCULATE 31,764.86 Future Value: $ 3,564.86 Interest Earned: $
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NAME _____________________________________________ DATE ____________________________ PERIOD _____________
7. Mary will take out a loan for $3,400 using her credit card. The table gives the monthly payment and interest rates on different tenures of loans. How much more will Mary pay in interest on a 36-month loan than on a 24-month loan?
For Exercise 8, use the data in the table that shows the ages of people in a ceramics class at a community center. 8. What is the mean absolute deviation? Round to the nearest hundredth.
