Simple Interest.
Simple Interest.
3. What initial deposit (principal) was made on account with simple annual interest rate 4%, if after 5 years balance on this account (amount) was $2,400 ?
Compound Interest.
4. For the annual interest rate r = 6% compounding every mount (12 times per year)
find i, the interest rate per compounding period.
Compound Interest.
5. $30,000 was invested at 6% annual interest rate compounded monthly.
How much will be on this account after 4 years?
Compound Interest.
6. Family invested money for 3 years at 8% annual interest rate compounded 4 times per year. After 3 years they received a check for $19,023.
How much was invested?
Future Value of Annuity.
7. John makes deposit of $200 every month to his retirement account.
Account has 7.2% annual interest rate compounded monthly.
How much will be on this account after 20 years?
Tip: For Future Value of Annuity (FV) use the formula: FV = M×
where M – regular monthly payment, N – total number of payments during 20 years,
i – interest rate per month in decimal form, i = annual rate/12.
Monthly Mortgage Payment.
8. A couple want to buy a house that for $300,000. They are planning to make down payment for $30,000 (10%) and the rest . Interest rate for 30 year mortgage is 6%.
What will be their monthly payment for 30years mortgage?
Tip: For Monthly Mortgage Payment (M) use the formula: M = L×
where L – loan taken from the bank (mortgage), N – total number of payments
during 30 years, i – interest rate per month in decimal form, i = annual rate/12.
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