Question

3. Calculate the total number of compounding periods, n, for each of the following: a) compounded semi-annually for 7 years b) compounded monthly for 5 years c) compounded weekly for 3 years 4. Use the compound interest formula, A = P(1 + i)^n, to find the unknown value: a) A=?, P=$1300, i=0.06, n=20 b) A=$8000, P=?, i=0.05, n=24 5. Use the formula, A = P + I, to determine the amount of interest earned if the principal is $1900 and the amount is $2350. 6. How much would an investment of $800 be worth in 90 days if it earns simple interest of 8.4% per annum. 7. An investment of $2200 earned interest at 9.2% per annum compounded quarterly. How much would the investment be worth in 5 years? 8. A car loan can be taken for 4 years. At an interest rate of 8.4% per annum compounded monthly, the total cost of the car loan would be $34243.70. What is the cost of the car if you pay cash for it today rather than take out the loan? 9. Karen made an investment of $2500, two years ago to go on a trip. She invested the money at 7.2% per annum, compounded semi-annually. Her investment will mature in three years. Dwayne would also like to go on the trip. However, he hasn't started saving yet. How much must he invest today at 9.6% per annum, compounded monthly to have the same amount as Karen will have three years from now?

          3. Calculate the total number of compounding periods, n, for each of the following: 
    a) compounded semi-annually for 7 years 
    b) compounded monthly for 5 years 
    c) compounded weekly for 3 years 

    4. Use the compound interest formula, A = P(1 + i)^n, to find the unknown value: 
    a) A=?, P=$1300, i=0.06, n=20 
    b) A=$8000, P=?, i=0.05, n=24 

    5. Use the formula, A = P + I, to determine the amount of interest earned if the principal is $1900 and the amount is $2350. 

    6. How much would an investment of $800 be worth in 90 days if it earns simple interest of 8.4% per annum. 

    7. An investment of $2200 earned interest at 9.2% per annum compounded quarterly. How much would the investment be worth in 5 years? 

    8. A car loan can be taken for 4 years. At an interest rate of 8.4% per annum compounded monthly, the total cost of the car loan would be $34243.70. What is the cost of the car if you pay cash for it today rather than take out the loan? 

    9. Karen made an investment of $2500, two years ago to go on a trip. She invested the money at 7.2% per annum, compounded semi-annually. Her investment will mature in three years. Dwayne would also like to go on the trip. However, he hasn't started saving yet. How much must he invest today at 9.6% per annum, compounded monthly to have the same amount as Karen will have three years from now?

Added by Erin F.

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