Show your work. Clearly show which formulas you are using and what values you are substituting intoeach part of the formula. Only round answers once at the end of the calculation.1. Assume a 6-month CD purchased for $5,000 pays simple interest at an annual rate of 9.5%. Howmuch interest does it earn?2. At age 25, you start work for a company that deposits $10,000 into a retirement account that pays anannual interest rate of 13.2% compounded monthly. If you retire at 65, what is the balance in thisaccount?3. Find the interest paid on a 30-year loan of $350,000 at an annual interest rate of 6% compoundedmonthly. Assume that you made monthly payments for the full 30 years.4. Suppose a CD advertised an interest rate of 8% compounded monthly. What is the effective annualyield? Express your answer to the nearest tenth of a percent.5. You are interested in a car which costs $25,000. You have a $2000 down payment, and you have afound a 4-year loan at 4.5% annual interest compounded monthly. How much total interest do you endup paying if you make equal monthly payments over the entire four years?6. You want to save money to buy a new computer. If you deposit $100 a month at an annual interestrate of 6% compounded monthly, how much money will you have saved after a year?7. You deposit $2000 at 3.25% annual interest compounded continuously. How much do you have after2 years?8. What is the effective annual yield for a savings account with an annual interest rate of 2.3%compounded semi-annually?9. Suppose you want to borrow $450,000 for a term of 25 years at an annual interest rate of 5.5%compounded monthly. What would your monthly payment be? 10. How much should you deposit at the end of each quarter into an account that pays 4.4% annualinterest compounded quarterly in order to have $5000 in three years?11. Against expert advice, you begin your retirement savings at age 40. You plan on retiring at age 65.How much will you need to deposit each month into a savings account with an annual interest rate of6% compounded monthly if your goal is to save $150,000?12. The going annual interest rate for a loan with a term of 30 years is 6% compounded monthly. Thelending agency says that based on your income, your monthly payment can be at most $900. Howmuch can you borrow?

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1. Assume a 6-month CD purchased for $5,000 pays simple interest at an annual rate of 9.5%. How much interest does it earn?