BAI 109 topics 14-15

Simple Interest

100

Interest of $7000 at a 3.2% rate for 2 years

$448

200

Interest of $5400 at a 6.8% rate for 7 years

$2570.4

300

Interest of $78000 at a 12.4% rate for 18 years

$174096

400

Interest of a 4440 at a 1.8% rate for 25 years

$1998

500

Suzie recently put $1200 into the bank to use on something special in the future. Her money is in an account with a yearly interest rate of 6.2%. How much money will be in her account after 4 years?

$297.6

Compound Interest

100

Interest of $4500 at a 6.7% interest rate compounded quarterly for 4 years

$4575.38

200

Interest of $68000 at a 5.6% rate compounded semiannually for 5 years

$72860.42

300

interest of $5000 at a .12% rate compounded daily for 17 years

$5000.00

400

Interest of $7000 compounded monthly at a 1.34% rate for 8 years

$7005.21

500

Michael opened a savings account and deposited $4200.00 as principal. The account earns 4.6% interest, compounded quarterly. What is the balance after 4 years?

$4248.3

Continuous Compound Interest

100

interest of $68900 at 5% interest rate compounded continuously for 7 years

$977737.54

200

$44444 compounded continuously at a 5.55% rate for 3 years?

$52495.63

300

$700 compounded continuously at a 6.41% rate for 8 years?

$1168.97

400

$8020 compounded continuously at a 0.12% rate for 21 years?

$8224.67

500

Dustin put some money into an account paying 4.5% compounded  continuously for 10 years. He now has $3567.91. How much money did he start with?

$2275

Future Value

100

You deposit $200 at the end of each month into an account that earns an annual interest rate of 6%, compounded monthly. How much money will be in the account after 5 years?

$83.21

200

Sn=1100[(1+(0.017/4)^12/4-1)/0.017/4]

$1054.58

300

Sn=44000

R=?

i=0.02/2

n=4

solve for R

$10836.37 

400

what is the future value of $2000 if it is compounded monthly for 3 years at a .9% interest rate?

$498.60

500

Lucas deposits $50 at the end of each month into an account with an annual interest rate of 3%, compounded monthly. How many months will it take for his account balance to reach $3,000?

 55.97 months OR roughly 4.7 years

Nominal interest

100

A bank offers a savings account with a nominal annual interest rate of 6%, compounded monthly. What is the effective annual interest rate?

6.17%

200

effective interest rate of 5% compounded daily?

(round to the nearest tenth)

5.1%

300

effective interest rate of 1.23% compounded quarterly?

(round to the nearest hundreth)

1.24%

400

effective interest rate of 0.694% compounded semiannually?

(round to the nearest thousandth)

0.695%

500

An investment account from Hawkins Bank promises an effective annual interest rate of 9%. If the interest is compounded quarterly, what is the nominal annual interest rate?

8.71%