Investing Terms
What does FV stand for?
Future Value
What is 10% as a decimal?
0.1
What is the simple interest (I) if P=$1000, r=5% p.a. and n=3years. Formula I=Prn
$150
Using the compound interest formula what is the Future Value (FV) if $2000 is invested for 3 years compounded yearly at 6% p.a.?
FV = PV(1+r)n
Future Value (FV) = $2382.03
Calculate the Present value (PV) amount that must be invested at 6% p.a. compounded annually to have a Future Value (FV) of $5000 at the end of 4 years?
PV = FV/(1+r)n
Present Value (PV) = $3960.47
What does r stand for?
interest rate per compounding period
What is 6% as a decimal?
0.06
What is the simple interest (I) if P=$5000, r=7% p.a. and n=6years.
I = $2100
What is the Future Value (FV) if $5000 is invested for 5 years compounded yearly at 5% p.a.?
FV = PV(1+r)n
FV = $6381.41
Calculate the Present value (PV) amount that must be invested at 3% p.a. compounded annually to have a Future Value (FV) of $2000 at the end of 7 years?
PV = FV/(1+r)n
PV = $1626.18
What does PV stand for?
Present Value
What is 11.4% as a decimal
0.114
If $4000 is invested with simple interest for 4 years at 3.5% p.a. how much interest is earnt?
I = $560
What is the Future Value (FV) if $12000 is invested for 7 years compounded yearly at 13% p.a.?
FV = $28231.27
Calculate the Present value (PV) amount that must be invested at 11% p.a. compounded annually to have a Future Value (FV) of $22000 at the end of 3 years?
PV = FV/(1+r)n
PV = $16086.21
What does I stand for in the simple interest formula
Amount of interest in dollars
What is 0.15 as a percentage?
15%
What is the new total amount (principle plus interest) if P=$7000 is invested at 8% p.a. for 2 years using simple interest? I=Prn.
Total Amount is $8120
What is the Future Value (FV) if $3000 is invested for 2 years compounded monthly at 5% p.a.?
FV = PV(1+r)n
FV = $3314.82
Calculate the Present value (PV) amount that must be invested at 3% p.a. compounded quarterly to have a Future Value (FV) of $5000 at the end of 2 years?
PV = FV/(1+r)n
PV = $4709.88
What does n stand for in the compound interest formula?
number of compounding periods
What is 0.094 as a percentage?
9.4%
What is the new total amount if $4500 is invested at 3% p.a. for 5 years using simple interest?
Total Amount = $5175
What is the Future Value (FV) if $9000 is invested for 7 years compounded quarterly at 8% p.a.?
FV = $15669.22
Calculate the Present value (PV) amount that must be invested at 7% p.a. compounded monthly to have a Future Value (FV) of $10000 at the end of 3 years?
PV = $8110.79