Mr. Johnson borrowed $14,500 from his friend to pay for the remodeling work on his
house and promised to pay it in 5 years.
6. How much will Mr. Johnson pay after 5 years if the fixed annual interest rate is
6.7%.
7. How much will Mr. Johnson pay after 5 years if the fixed annual interest rate of
6.7% is compounded monthly?
8. How much will Mr. Johnson pay after 5 years if the fixed annual interest rate of
6.7% is compounded continuously?
Maddie’s Grandparents deposited $6,500 into her account for her future college
education.
9. How much money will be in the account 16 years from now if the account earns an
8.5% annual interest rate?
10. How much money will be in the account 16 years from now if the account earns an
8.5% annual interest rate and is compounded annually?