Download In Class Worksheet 7

Math 116
In-Class Worksheet #7
Spring 2015
Name:
1. Suppose you want to setup a college fund for your 2 year old son. How much would you need to put
into a bank account now so that your son will have $20,000 for college when he turns 18? Assume
an interest rate of 4.89% compounded continuously.
2. Find the present value of $2000 due in 3 years. Assume an investment rate with an APR of 2.21%
compounded monthly.
Math 116
In-Class Worksheet #7
Spring 2015
3. Suppose you borrow $5000 under the condition of paying the lender a total of $6000 at the end of
eight years. If you deposit $2000 at the end of the second year and the fourth year into an account
that pays 6.01% compounded quarterly, how much should you add to the account if you want to
make a final deposit at the end of the sixth year to pay off the debt?
4. A population of bacteria doubles every 15 minutes. If you start with 500 bacteria. How many bacteria
will there be in 5 hours? What is the hourly growth rate of the bacteria? What is the daily growth
rate of the bacteria?