1.	A man borrowed $29,000 for two years under simple interest. At the end of the two years his balance due was $31,900. What annual simple interest rate did he pay? 	

2.	A man borrowed $9,000 for four years under simple interest. At the end of the four years his balance due was $11,160. What annual simple interest rate did he pay? 	

3.	Suppose you invest $6000 and would like your investment to grow to $8000 in five years. What interest rate, compounded monthly, would you have to earn in order for this to happen? 	

4.	Suppose you invest $5000 and would like your investment to grow to $10,000 in eight years. What interest rate, compounded weekly, would you have to earn in order for this to happen? 	

5.	Michelle invests in a savings account that pays 4% interest compounded monthly. What is the APY for this account? 	

6.	Brad invests in a savings account that pays 8% interest compounded quarterly. What is the APY for this account? 	

7.	Moira invests in a savings account that pays 6% interest compounded weekly. What is the APY for this account? 	

8.	Zoe invests in a savings account that pays 7% interest compounded quarterly. What is the APY for this account? 	

9.	Use the geometric series formula to find the sum of . 	

10.	Use the geometric series formula to find the sum of , where the ± denotes + if n is odd and – if n is even (to fit the pattern of the earlier terms). 	

11.	Use the geometric series formula to find the sum of . 	

12.	Use the geometric series formula to find the sum of , where the ± denotes + if n is odd and – if n is even (to fit the pattern of the earlier terms). 	

13.	Kamel bought a house in 1982 for $67,000 and sold it in 2001. If the 1982 CPI is 96.5 and the 2001 CPI is 177.1, how much would the house be worth in 2001 dollars?	

14.	Matthew made an investment with an 8% annual yield. However, the real growth rate of his investment was only 5%. What was the inflation rate? 	

15.	Margaret made an investment with a 10% annual yield. However, the real growth rate of her investment was only 4.5%. What was the inflation rate? 	

16.	In 1960 the inflation rate was about 5.1%. If you invested in a savings account with an annual interest rate of 4.9%, what was the real growth rate of this investment? 	

17.	In 1984 the inflation rate was about –0.24%. If you invested in a savings account with an annual interest rate of 9.4%, what was the real growth rate of this investment? 	

18.	Michael wants to make an investment that will have a real growth rate of 10%. If the current inflation rate is 11.4%, what annual interest rate will he need to get on his investment to accomplish his goal? 	

19.	Stephen wants to make an investment that will have a real growth rate of 15%. If the current inflation rate is 5.4%, what annual interest rate will he need to get on his investment to accomplish his goal?	

20.	Stephen made an investment with a 9% annual yield. However, the real growth rate of his investment was only 4%. What was the inflation rate? 	

21.	Marlene made an investment with a 12% annual yield. However, the real growth rate of her investment was only 6.5%. What was the inflation rate? 	

22.	In 1960 the inflation rate was about 5.1%. If you invested in a savings account with an annual interest rate of 7.3%, what was the real growth rate of this investment? 	

23.	In 1984 the inflation rate was about –0.24%. If you invested in a savings account with an annual interest rate of 6.8%, what was the real growth rate of this investment? 	

24.	Alex wants to make an investment that will have a real growth rate of 6.2%. If the current inflation rate is 4.5%, what annual interest rate will he need to get on his investment to accomplish his goal? 	

25.	Jack wants to make an investment that will have a real growth rate of 8%. If the current inflation rate is 2.1%, what annual interest rate will he need to get on his investment to accomplish his goal?	

26.	Mildred bought a house in 1962 for $17,000 and sold it in 2004. If the 1962 CPI is 30.9 and the 2004 CPI is 189.5, how much would the house be worth in 2004 dollars?	

27.	Nebo bought a house in 1999 for $67,000 and sold it in 2002. If the 199 CPI is 166.5 and the 2002 CPI is 179.9, how much would the house be worth in 2002 dollars?	

28.	Owen sold a house in 2003 for $104,000 that he had purchased in 1990. If the 1990 CPI is 130.7 and the 2003 CPI is 184.0, how much would the house be worth in 1990 dollars?	

29.	In 2000 Patti had the choice to invest $100,000 in the housing market for five years, or invest in a CD paying 4% compounded annually.  If the 2000 CPI is 172.2 and the 2005 CPI is 195.0, which is the better choice?	

30.	In 2000 Patti had the choice to invest $100,000 in the housing market for five years, or invest in a CD paying 3% compounded annually.  If the 2000 CPI is 172.2 and the 2005 CPI is 195.0, which is the better choice?	

Answer Key

1.	5%	
2.	6%	
3.	5.77%	
4.	8.67%	
5.	4.07%	
6.	8.24%	
7.	6.12%	
8.	7.19%	
9.	
	
10.	
	
11.	11/16	
12.	
  or	
13.	$122,961	
14.	2.86%	
15.	5.26%	
16.	–0.19%	
17.	9.66%	
18.	22.54%	
19.	21.21%	
20.	4.81%	
21.	5.16%	
22.	2.09%	
23.	7.06%	
24.	10.98%	
25.	10.27%	
26.	$104,256	
27.	$72,392	
28.	$73,874	
29.	The CD.  The housing market would return $113,240 and the CD would return $121,665.	
30.	The CD.  The housing market would return $113,240 and the CD would return $115,927.