Financial Math Answers

Find the lump sum deposit which will give $3,092 in 10 years in an account paying 5.01% compounded quarterly.

The balance in an account grew from $5,032 to $12,145 in 15 years, when interest was compounded quarterly. What was the interest rate? 

Tom deposited $5,544 into a savings account paying 8.2% interest compounded monthly. Find the balance after 8 years.

Find the number of years needed for a $3,470 deposit to grow to $4,611 when interest is 5.35% compounded daily. 

Find the lump sum deposit which will give $9,430 in 10 years in an account paying 1.24% compounded monthly. 

Southwest Dry Cleaners believes that it will need equipment in 10 yeas. The equipment will cost 26,000. What lump sum should be invested today at 6% compounded semiannually to yield $26,000?

You buy items costing $800 and finance the cost with a fixed loan installment for 18 months at 5% simple interest per year. What is the finance charge? What is the monthly payment?

 Suppose that the monthly compounded annual interest rate is 2.5%. What is the [2] present value β of 1 pound received in 1 month from today (in other words, the discounting factor)? Give your answer to 6 decimal places

Harry has received a $1,500 bonus. His bonus is expected to grow by 5 percent for the next 5 years. How much will Harry have at the end of the fifth year if he invests his bonuses (including the most recent bonus) in a project paying 8 percent per year?

You have decided to endow Faculty of Business, Dokuz Eylul University with a scholarship. It is expected to cost ​$3,000 per year to attend the university into perpetuity. You expect to give the university the endowment in 9 years and will accumulate it by making equal annual​ (end-of-year) deposits into an account. The rate of interest is expected to be 8​% for all future time periods.

a. How large must the endowment​ be?

b. How much must you deposit at the end of each of the next 9 years to accumulate the required​ amount?