Reference no: EM133280102
1. You deposit $300 in an account earning 5% interest compounded annually. How much will you have in the account in 10 years?
2. You deposit $4000 in an account earning 3% interest compounded monthly. How much will you have in the account in 5 years?
3. How much would you need to deposit in an account now in order to have $3000 in the account in 5 years? Assume the account earns 8% interest compounded monthly.
4. You deposit $300 each month into an account earning 4% interest compounded monthly.
a) How much will you have in the account in 25 years?
b) How much total money will you put into the account?
c) How much total interest will you earn?
5. You deposit $3000 each year into an account earning 7% interest compounded annually. How much will you have in the account in 35 years?
6. Suppose you want to have $600,000 for retirement in 35 years. Your account earns 4% interest.
a) How much would you need to deposit in the account each month?
b) How much interest will you earn?
7. You have $500,000 saved for retirement. Your account earns 10% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 15 years?
8. You want to be able to withdraw $40,000 each year for 30 years. Your account earns 10% interest.
a) How much do you need in your account at the beginning?
b) How much total money will you pull out of the account?
c) How much of that money is interest?
9. You can afford a $1450 per month mortgage payment. You've found a 30 year loan at 6% interest.
a) How big of a loan can you afford?
b) How much total money will you pay the loan company?
c) How much of that money is interest?
10. You want to buy a $34,000 car. The company is offering a 4% interest rate for 36 months (3 years). What will your monthly payments be?
11. You want to buy a $229,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan for the rest.
a) How much is the loan amount going to be?
b) What will your monthly payments be if the interest rate is 5%?
c) What will your monthly payments be if the interest rate is 6%?
12. You deposit $2000 in an account earning 3% interest compounded monthly. How much will you have in the account in 10 years?
13. You deposit $6000 in an account earning 7% interest compounded monthly. How much will you have in the account in 5 years?
14. Find the simple interest owed if $350 is borrowed at 2.1% for 9 years.
15. How much should you invest at 3.1% simple interest in order to earn $90 interest in 19 months?
16. What is the simple interest rate on a $2050 investment paying $861.00 interest in 17.5 years? (round to the nearest tenth of a percent)
17. You deposit $1510 in a savings account paying 1.2% simple interest.
a. How much interest will you earn in 7 years?
b. How much is in the account at the end of 7 years?
18. A friend lends you $190, which you agree to repay with 3% interest.
a. How much will you have to repay?
b. How much of that was interest?
19. A friend lends you $630, which you agree to repay with 4% interest. How much will you have to repay?
20. The city is issuing bonds to raise money for a building project. You obtain a $3500 bond that pays 5% interest annually that matures in 7 years. How much interest will you earn?