Financial Math Answers

Find the accumulate amount of

(a) $600 earns simple interest at 5% p.a. over 7 years.

(b) $480 compounded annually at 14% p.a. over 5 years

(c) $1,500 compounded semi-annually at 8% p.a. over 3 years.

(d) $2,000 compounded quarterly at 10% p.a. over 4 years.

(e) $500 compounded monthly at 12% p.a. over 6 years.

Find the present value of $700 due in five years’ time at 6% p.a. compounded monthly

Find the present value of $300 due in six years’ time at 8% p.a. compounded annually. 

X must borrow $2000 for 2 years. He is offered the money at: (A) 5% compounded quarterly (B) % 8 3 5 compounded annually (C) % 2 1 5 simple interest Which offer should he accept

A firm plans to invest an amount of money at the beginning of every year in order to acquire a sum of $50,000 at end of 5 years. If the investment rate is 7% p.a., what is the value of the sum

An insurance fund invests Rs. 500,000 at the beginning of each year for five years at an interest rate of 8.5% p.a. Calculate the total amount in the fund at the end of year 5.

1. A company will have to spend $300000 on new plant in two years from now.

Currently investment rates are at a nominal 10%. (a) What single sum should now be invested, if compounding is six-monthly?

(b) What is the APR?

1. Find the effective rate (APR) for a nominal rate at

(a) 7% p.a. compounded annually.

(b) 8% p.a. compounded semi-annually.

(c) 10% p.a. compounded quarterly.

(d) 9% p.a. compounded monthly.

1. Find the time required for $200 to grow to $600 if interest rate is 8.5% p.a. compounded annually. (Round the answer to the nearest month)
2. Find the accumulate amount of $1000 at the end of year 5 if interest is

• 8% p.a. for the first year
• 8.5% p.a. for the second year
• 9% p.a. for the third and fourth year
• 8% p.a. in the fifth year

1. David deposits $10,000 into his savings account that earns interest at 9% p.a. compounded annually for the first 2 years, 8% p.a. compounded semi-annually for the next 3 years and 12% p.a. compounded monthly for the next 2 years. Find the accumulated amount at the end of 7 years.
2. Find the accumulate amount if (a) $300 is invested at 5.5% p.a. compounded yearly for 3 years? (b) $500 is invested at 7% p.a. compounded quarterly for 4 years? (c) $700 is invested at 12% p.a. compounded monthly for 6 years? (d) $8400 is invested at 4% p.a. compounded quarterly for 5 years?

David bought a radio for $79.95. He paid $19.95 down payment and agreed to pay the balance plus an interest in three months. If the total interest he paid was $6, what is the rate of simple interest in three months?

Find the simple interest of $1000

(a) at 5% per annum for one year