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avatar+4287 
  1. Calculate the future value of $5,000 invested at 12% p.a. interest compounded semi-annually over 5 years.

and    

  1. What principle would you have to deposit if you need $10,000 in 5 years invested at an interest rate of 12% p.a. compounded semi-annually

and 

  1. Mr G Wizz deposited $5,000 on 1 January 1999 with Y.B. Heer Finance Company, receiving interest of 8% p.a. compounded quarterly.  On 1 January 2001 interest rates were increased to 9% p.a.  How much should Mr Wizz expect to receive in interest on 1 January 2004?

 

A TAFE graduate is anxious to purchase a used car, for which he estimates that he will need a total of $8,000.  He currently has $6,200 and is offered two different investment plans.  A and B. Under Plan A he would be paid simple interest at an annual rate of 5.4%, and under Plan B he would be paid an annual interest rate of 4.8% compounded monthly.  Under each plan, how long  would it be before he reached his target of $8,000?

 

 

 

  1. The Shady Bank is offering ‘unbeatable deals’ on its savings accounts, where it will pay interest that is compounded quarterly at an annual rate of 4%.  Shannon wants to save $10,000 to purchase a car, but has only $8,000 to invest in the savings account on 1 June 2001.  Under the bank’s deal, an approximately what date will Shannon reach her target?
 Jan 22, 2017
 #1
avatar+18332 
+5

Here is an idea tertre....instead of us doing your homework......why don't you try to solve the problems and post your attempts here and we will see how you are doing and help you along ???   Cool?

 Jan 22, 2017
 #2
avatar+4287 
+1

Um, I have to finish by today.

 Jan 22, 2017
 #3
avatar+101390 
+1

EP is correct.....we don't mind doing a few problems, but you will never learn if you don't try some yourself.....besides.....many of these are the same.....the numbers have just been changed to protect the innocent....

 

 

cool cool cool

 Jan 22, 2017

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