Kient Guimbarda

BSCE – 2
ES 21- QUIZ NO. 1
(9-20-2022)

1. A principal of $4,000 is placed in a savings account at 6% per annum compounded annually. How
much is in the account after one year, two years and three years?

2. What would $2000 become in a saving account at 6% per year for 3 years when the interest is not
compounded (simple interest)? What would the same amount become after 3 years with the
same rate but compounded annually?

3. $1,000 is the principal deposited in a 5% saving account not compounded (simple interest). The
same amount of $1,000 is placed in a 5% saving account compounded annually. Find the total
amount F after 20 years for the simple interest computation and 14 years for the compound
interest computation.
4. If $6,000 is placed in an account at 5% and is compounded quarterly for 5 years. How much is in
the account at the end of 5 years?

5. $2,400 is placed in an account at 4% compounded annually for 2 years. It is then withdrawn at

the end of the two years and placed in another bank at the rate of 5% compounded annually for
4 years. What is the balance in the second account after the 4 years?

6. $2,400 is placed in an account at 4% compounded daily for 2 years. It is then withdrawn and
placed in another bank at the rate of 5% compounded daily for 4 years. What is the balance in
the second account after the 4 years? (compare with the previous problem)
7. $2,400 is placed in an account at 4% compounded continuously for 2 years. It is then withdrawn
and placed in another bank at the rate of 5% compounded continuously for 4 years. What is the
balance in the second account after the 4 years? (compare with the two previous problem)

8. What principal you have to deposit in a 4.5% saving account compounded quarterly in order to
have a total of $10,000 after 8 years?

9. A principal of $120 is deposited in a 7% account and compounded continuously. At the same

time a principal of $150 is deposited in a 5% account and compounded annually. How long does
it take for the amounts in the two accounts to be equal?
10. A first saving account of $1,000.00 pays 5% compounded daily. A second saving account
of $1,000.00 pays 5% compounded continuously. Which of the two investments is better in the
long term?