Question 1161158
1) Find the future value of a simple interest loan of $4,000 at 5.5% interest for 7 months?
2) Find the present value of $26,500 in 9 months at 5.8% interest.
3) Find the time required for an investment of 5000 dollars to grow to 6400 dollars at an interest rate of 7.5 percent per year, compounded quarterly.
<pre>Answer for 1) from the other person is WRONG. Does he really think that investing $4,000 for 7 months could YIELD only $18 in interest? 
$18 in interest represents an interest rate of .77%, which is less than 1%.
Correct answer: {{{highlight_green(matrix(3,3, A, "=", P(1 + TR),
A, "=", "4,000"(1 + (7/12) * .055),
A, "=", highlight("$4,128.33")))}}}, with Future Value being A
In terms of years (the usual time frame), 3) should be: {{{highlight_green(matrix(7,3, A, "=", P(1 + i/m)^(mt), "6,400", "=", "5,000"(1 + .075/4)^(4t), "6,400"/"5,000", "=", (1 + .075/4)^(4t),
32/25, "=", (1 + .075/4)^(4t),
4t, "=", log ((1 + .075/4), 32/25), t, "=", (log ((1 + .075/4), 32/25))/4,
t, "=", highlight(3.2)))}}}, with A being future value and t being time, in years.