Simple Interest
Franklin deposits $600 dollars into an account with a 7% simple annual interest rate, and Gregory deposits the same amount into an account with a 7% compounded annual interest rate. Who will have the account with more money after 10 months have passed?
Franklin
Rachel wants to have $600 in three years. What is the minimum amount she needs to deposit into an account with an 8% interest compounded yearly in order to achieve this $600?
$476.30
If the nominal annual interest rate is 8% compounded quarterly, what is the annual effective rate?
8.24%
Colleen has an investment account with an 11% annual interest rate. What is the account’s effective annual discount rate?
.099
Drew puts $200 into an account earning a 10% simple interest annually. How much money will the account have in three years?
$260
How much should you deposit in an account with a 6.7% compounded annual interest rate in order to pay yourself $600 in 6 years and $700 in 7 years?
$851.17
Brad puts $3,000 into an account with a 10% nominal interest rate compounded semi-annually. How much money will the account have in 42 months?
$4,221.30
Timothy deposits $50 into an account with a 9% annual discount rate. How much will the account have after 4 years?
$72.91
Brian puts money into an account earning 10% annual simple interest. For the time interval [3,4], what is the effective annual interest rate?
7.7%
William is setting up an investment account in 2026 that has an interest rate of 2%. He wants to receive $500 from this account in odd-numbered years and $850 in even-numbered years for the next 10 years. How much should he put into his account today to make that happen?
$5825.34
After an investment of $1,000 today and a withdrawal of $800 at the end of year 1, an account that has quarterly compounding interest accumulates $1,500 after 2 years. What is i(4)?
.5596
If the nominal discount rate is 48% convertible monthly, what is the effective annual interest rate?
.6319