Reference no: EM132988348

Question - Compound Interest - Ricardo has decided to invest $100 in an account that pays 8% interest compounded semi-annually. If he leaves the money for 2 years, how much will he receive? If the interest were compounded quarterly, how much will he receive?

What amount of money is necessary to deposit now in a savings account that pays 8% per annum compounded semi-annually to accumulate in 3 years the amount of $100,000?

A bank pays 6% interest on its savings accounts. Interest is paid quarterly, that is, on March 31, June 30, September 30 and December 31. Deposits made before the 10th of each month earn interest for the full month. Ricardo opened an account on January 2, depositing $50,000. How much interest will he receive on June 30?

What will be the interest rate earned on a project that requires an investment of $10,000 and produces $20,114 at the end of 5 years?

Mr. Martinez wishes to accumulate $150,000 in 5 years. If the bank pays 7% annual interest compoundable quarterly, how much should he deposit?

Which is worth more at 9%: $1,000 today or $2,500 after 8 years?

The movements of a customer's credit account at a department store are:

Balance on February 5: $5,000

Debit on February 28: $1,000

Credit on April 15: $2,000

Charge on June 30: $2,500

Charge on July 31: $1,500

Credit on September 30: $10,000

If the store charges an interest rate of 72% p.a. What amount will the customer have to pay on September 30 to settle his account?

Assuming you had a certain amount of cash on hand, how much money would you be willing to lend to your cousin who offered to pay you back $65,000 in 7 years, if the interest rate is 8% per year?

A person bought a car paying $59,500 on January 1 and sold it on June 1 of the following year for $66,000. Considering that the market interest rate is 55% per year, was the operation convenient if you consider it an investment? Justify.