Question

chapter 5.5 and 5.6 textbook questions
questions:
principal x interest rate x years = interest
#1: principal: $2,500, interest rate: 1.5% = .015, period of time: 3 years, simple interest? 112.50
#2: principal: $3,000, interest rate: 3.75% = .0375, period of time: 2 years, simple interest?
#3: principal: $4,675, interest rate: 4% = .04, period of time: 1 year, simple interest?
#4: principal: $4,800, interest rate: 3% = .03, period of time: 5 years, simple interest?
#5: principal: $15,000, interest rate: 2% = 0.02, when compounded: quarterly, first quarter: 75.00, second quarter: 75.38
#6: principal: $36,000, interest rate: 3.5%, when compounded: quarterly, first quarter: , second quarter:
#7: principal: $40,000, interest rate: 4.2%, when compounded: quarterly, first quarter: , second quarter:

Explanation:

Step1: Calculate simple interest for #2

$\text{Simple Interest} = 3000 \times 0.0375 \times 2$

Step2: Calculate simple interest for #3

$\text{Simple Interest} = 4675 \times 0.04 \times 1$

Step3: Calculate simple interest for #4

$\text{Simple Interest} = 4800 \times 0.03 \times 5$

Step4: Calculate quarterly rate for #6

$\text{Quarterly Rate} = \frac{3.5\%}{4} = 0.00875$

Step5: Calculate Q1 interest for #6

$\text{Q1 Interest} = 36000 \times 0.00875$

Step6: Calculate Q2 principal for #6

$\text{Q2 Principal} = 36000 + 315$

Step7: Calculate Q2 interest for #6

$\text{Q2 Interest} = 36315 \times 0.00875$

Step8: Calculate quarterly rate for #7

$\text{Quarterly Rate} = \frac{4.2\%}{4} = 0.0105$

Step9: Calculate Q1 interest for #7

$\text{Q1 Interest} = 40000 \times 0.0105$

Step10: Calculate Q2 principal for #7

$\text{Q2 Principal} = 40000 + 420$

Step11: Calculate Q2 interest for #7

$\text{Q2 Interest} = 40420 \times 0.0105$

Answer:

Simple Interest Table:

#	Simple Interest?
#3:	$\$187.00$
#4:	$\$720.00$

Compounded Quarterly Table:

#	First Quarter	Second Quarter
#7:	$\$420.00$	$\$424.41$