
For the tutorial in the box below, first study the problem for a few minutes. Decide how you would translate the words into mathematical language, perhaps writing your thoughts on paper. Then let your mouse wander across the problem, noting how another observer might use and translate the same phrases. Then try the exercises below.
conscience 
Dear old Harry ! 
Prof M^{c}Farland felt that the student's main difficulty is the "setting up" process, and he hopes that this web device helps the set up in a new and interesting way. Your comments are eagerly invited!
Suggestions for this self exam:  
[A]  Study your text sections relating to COMPOUND INTEREST and ANNUITIES (Chapter 5 in Rolf), but then keep your book closed during this entire test. For further practice try the interactive tutorial above, or a SELFGRADING QUIZ 
[B]  Method choice buttons for each problem show the correct choice when the mouse arrow moves over them. Hence, keep your mouse restrained until you have thought out your response. You may also click on whichever formula (of the 3 shown) is best in solving each problem. Then enter your answer in the box provided, rounding to the nearest dollar. 

[2]  Find the accumulated amount after 8 years if $12O is invested at an annual rate of 6% compounded semiannually?  
Choose method first F 

[4]  An I.O.U. promises to pay $65O in 5 years. If interest rates are 6% compounded annually, what is this I.O.U. worth today?  
Choose method first F 

[5]  A bond promises to pay the owner a sum of $5000 every 3 months for 6O years. If annual interest rates are 8% compounded quarterly, what should be the price of this bond today?  
Choose method first F 
