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How much money will you pay after three years

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Reference no: EM132026946

Question 1 : Find the interest paid on a loan of $1,200 for three years at a simple interest rate of 5% per year. How much money will you pay after three years?

Question 2 : Find the maturity value of a loan of $1,750 for 28 months at 9.8% simple interest per year.

Principal
Rate
Time -- Please make sure that the time periods for Time and Rate match.

Question 3 : Find the simple interest rate of a loan of $5,000 that is made for three years and requires $1,762.50 in interest.

Principal
Time
SI

Question 4 : A loan of $16,840 is borrowed at 9% simple interest and is repaid with $4,167.90 interest. What is the duration of the loan?

Principal
Rate
SI

Question 5 : How much money is borrowed if the interest rate is 9.25% simple interest and the loan is made for 3.5 years and has $904.88 interest?

SI
Rate
Time

Question 6 : Find the ordinary and exact interest for a loan of $1000 at a 5% annual interest rate. The loan was made on March 15 and is due May 15.

Question 7 : Find the bank discount and proceeds using ordinary interest for a loan to Michelle Anders for $7,200 at 8.25% annual simple interest from August 8 to November 8.

Question 8 : What is the effective interest rate of a simple discount note for $8,000, at an ordinary bank discount rate of 11%, for 120 days?

Question 9 : What is the effective interest rate for the ?rst year for a loan of $20,000 for three years if the interest is compounded quarterly at a rate of 12%?

Question 10 : Tim Bowling has $20,000 invested for three years at a 5.25% annual rate compounded daily.

How much interest will he earn?

Exercise

Find the future value of a $15,000 money market investment at 2.8% annual interest compounded daily for three years.

The Holiday Boutique would like to put away some of the holiday profits to save for a planned expansion. A total of $8,000 is needed in three years. How much money in a 5.2% three-year certificate of deposit that is compounded monthly must be invested now to have the $8,000 in three years?

Exercise

How much should be invested now to have $15,000 in six years if interest is 4% compounded quarterly?

Question 12 : Jamie Juarez needs $12,000 in 10 years for her daughter's college education.

How much must be invested today at 2% annual interest compounded  semiannually to have the needed funds?

A loan of $8,000 for two acres of woodland is compounded quarterly at an annual rate of 6% for ?ve years. Find the compound amount and the compound interest.

Attachment:- Quantitative Techniques in Financial Valuation.rar

Reference no: EM132026946

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