| Economics |
| Financial Mathematics |
| | 1 | Harry borrows $20,000 at 5.25%. He plans to repay this loan in 9 months. |
| | | How much interest will Harry pay? |
| | 2 | Jennifer has a loan for $11,280 for 85 days at 9% interest, How much interest does she end up paying? |
| | 3 | John is owed $19,500 by Dave. The money is to repaid in 11 months without interest. |
| | | If the current interest rate is 10%, how much money should John be willing to accept today |
| | | for settlement of the debt? |
| | 4 | You lend a friend $500. He agrees to pay $520 in 6 months. What is the interest rate? |
| | 5 | Find the FV or Future Value of the following loan: |
| | | A. $3475 loan at 7.5% for 6 months |
| | | B. $24,500 loan at 9.6% for 10 months |
| | 6 | William borrowed $12,000 from his uncle. His uncle charges 3.% annual for 5 years. |
| | | Find the total amount (principal and interest) that William will need to pay his uncle. |
| | 7 | Danielle borrowed $7500 with an annual interest rate of 7%. Danielle eventually repays $7675 |
| | | (principal and interest). What was the time period of the loan? NPER? |
| | 8 | Paul needs $6000 in 10 months. What is the present value of $6000 at 3.6% monthly interest |
| | | to accumulate $6000 in 10 months? |
| | 9 | A car dealership ordered 12 new automobiles from the manufacturer. The total purchase price was $420,000. |
| | | The vehicles will be delivered in three (3) months. |
| | | What amount should the dealership deposit today to pay of the vehicles in three months assuming 4.1% annual interest? |
| | 10 | Suppose $1000 is deposited for 6 years per year compounded annually. |
| | | No additional payments are made in this account. How much interest is earned after 6 years? |
| | 11 | If a $16,000 investment grows to $50,000 in 18 years, what is the interest rate assuming annual compounding? |
| | 12 | Assume an investment of $10,000 is invested for one year and interest is 1.85%. |
| | | Find the interest amounts of the following scenarios: |
| | | A. | Annual compounding. |
| | | B. | Semi-annual compounding. |
| | | C. | Daily compounding. |
| | 13 | $1500 is deposited at the end of a month for the next 6 years into an account paying 8% |
| | | interest compounded daily. Find the FV future value of this annuity. |
| | 14 | Sara opens an account at her local bank. She deposits $950 monthly for 10 years. |
| | | Assuming an interest rate of 1.11% compounded monthly, compute how much interest |
| | | will be in the account after 10 years. |
| | 15 | A company deposits $200 a month into an account for 20 years in order to accumulate |
| | | $100,000. What interest rate must the company earn to have $100,000 in 20 years? |
| | | How much of the $100,000 acquired, is interest? |
| | 16 | Use the Rule of 72. If $10,000 is invested for 36 years at 6%, how many times will the value |
| | | double according the to the Rule of 72? |
| | | What will be the value of the account in 36 years? How much is interest? |
samet
MATHPVandFVandINTEREST15Q2020.xlsx
