2. Find the annual percentage yield (APY), to the nearest hundredth of a %, for an account with an APR of 12% with daily compounding.

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Norma Jacobs
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1 1. Suppose that you ivest $4,000 i a accout that ears iterest at a of 5%, compouded mothly, for 58 years. `Show the formula that you would use to determie the accumulated balace, ad determie the accumulated balace.. Fid the aual percetage yield (AY, to the earest hudredth of a %, for a accout with a of 1% with daily compoudig. 3. You ivest $15,000 i a mutual fud. Over 7 years your ivestmet falls to $8,000. a Compute the Total Retur of your ivestmet, ad compute the aual retur. 4. Suppose you wat to have $500,000 i a accout i 10 years time. Assume a of 3.5% ad iterest is compouded mothly. What should be the amout of the iitial deposit if it is the oly deposit you make? What should the amout of each deposit be if you make quarterly deposits? 5. Compute the mothly paymets of a $100, year fixed rate home mortgage at a of 8.9%. 6. Suppose that a sigle bacterium is i a bottle at 1:00 am. It divides ito 3 bacteria at 1:01am, ad the populatio cotiues to double every miute util the bottle is completely full at 1:30am.. Fid the populatio of bacteria at 1:0 am. 7. The price of a particular model of computer is $5,000 today ad falls with time at a costat rate of $500 per year. How much will the computer cost i 8 years? 8. The quadruplig time of a bak accout balace is 0 years. By what factor does it grow i 36 years? 9. If prices (i Brazil icrease at a mothly rate of 3.%, how much do they icrease i a decade? 10. Use the approximate doublig time formula to determie the doublig time of a populatio that has a growth rate of 1% per year. 11. Solve the equatio 5 s =17 for the ukow quatity x, correct to two decimal places. (3pt 1

2 1. State whether these growth (or decay statemets are liear or expoetial. The populatio doubles every year; The amout of a drug i the bloodstream is decreasig at a rate of 0% per hour; The umber of rats i a lab is icreasig by 1 every day. 13. A licese plate cosists of three letters of the alphabet (excludig Q ad L ad 10 umerical digits (excludig 0. How may differet serial umbers are possible? Repetitio is permitted 14. I a exam, studets are required to aswer exactly 7 questios from 111 True-False questios ad work exactly3 problems out of 5 word problems. I how may ways ca they make their selectios 15. A cafeteria offers 10 appetisers, 8 mai courses, ad 5 deserts, but you are ot allowed to have desert if you had a appetizer. How may differet meals ca you have? 16 How may differet 1--3 fiishes are there i a horse race with 10 horses. 17. Idetify the method (theoretical, empirical, or subjective that resulted i the followig probability statemets. a. A coi tossed 100 times resulted i 17 heads. Therefore the probability of gettig heads o a toss is.54. (pts b. There are two possible outcomes whe you toss a coi ad heads is oe of these outcomes. Therefore the probability of gettig heads i a toss is 1 or I a particular class, there are 18 freshma, 1 sophomores, 4 juiors, ad seiors. If the istructor radomly chooses a studet to aswer a questio i class, what is the probability that the studet chose will be a freshma? (3pts 19. The probability that a studet chose at radom from your class is a Math major is.01. What is the probability that a studet chose at radom from your class is Not a Math major? 0. Give that (E =0, what must be true about the evet E? a. The evet E is impossible. b. The evet E is possible but ot likely.

3 c. The evet E is probable but ot certai. d. The evet E is certai. Compoud Iterest Formula for Iterest aid Times per Year ( Y A A = (1 + = ( Y (1 + 3

4 where = startig pricipal, = aual percetage rate, = umber of compoudig periods per year, Y = umber of years, ad A = Accumulated balace after Y years. Compoud Iterest Formula for Cotiuous Compoudig ( * Y A = e Savigs la Formula (Regular aymets ( Y [(1 +! 1] A = MT ( = ( MT A ( [(1 + Y! 1] where MT = regular paymet amout, ad = # of paymet periods per yr. Loa aymet Formula (Istallmet Loas *( MT = (! y [1! (1 + ] Total Retur ad Aual Retur ( A! Total Retur = Chage to percet ( 1 Y & # $ & A # Aual Retur = '! $! 1 Chage to percet %% " " where Y is the ivestmet period i years. Formulas for Expoetial Growth ad Decay Approximate Doublig Time ad Half-Life Formula (Rule of T double! Exact Doublig Time ad Half-Life Formulas 70! T Doulbe = =! (1 + r (1! r Forms of the Expoetial Fuctio If give the growth or decay rate r, use the expoetial fuctio i the t form Q = Q! (1 r Remember that r is positive for growth ad egative for decay. 0 ± If give the doublig time T double, use the expoetial fuctio i the form Q = Q 0! t T double & 1 # If give the half-life T half, use the expoetial fuctio i the formq = Q0 ' $! % " Formulas for robability For Idepedet Evets: (A ad B = (A!(B For Ay Evets: (A ad B = (A! (A give B For Mutually Exclusive (No-Overlappig Evets: (A or B=(A+(B For Ay Two Evets: (A or B=(A + (B - (A ad B t 4

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MATH : EXAM 2 REVIEW. A = P 1 + AP R ) ny

MATH : EXAM 2 REVIEW. A = P 1 + AP R ) ny MATH 1030-008: EXAM 2 REVIEW Origially, I was havig you all memorize the basic compoud iterest formula. I ow wat you to memorize the geeral compoud iterest formula. This formula, whe = 1, is the same as