1. If you deposit $4000 into an account paying 6% annual interest compounded quarterly,

how much money will be in the account after 5 years?

2. If you deposit $6500 into an account paying 8% annual interest compounded monthly,

how much money will be in the account after 7 years?

3. How much money would you need to deposit today at 9% annual interest

compounded monthly to have $12000 in the account after 6 years?

4. If you deposit $5000 into an account paying 6% annual interest compounded monthly,

how long until there is $8000 in the account?

5. If you deposit $8000 into an account paying 7% annual interest compounded quarterly,

how long until there is $12400 in the account?

6. At 3% annual interest compounded monthly, how long will it take to double your

money?

7. If you deposit $4500 at 5% annual interest compounded quarterly, how much money

will be in the account after 10 years?

8. If you deposit $4000 into an account paying 9% annual interest compounded monthly,

how long until there is $10000 in the account?

9. If you deposit $2500 into an account paying 11% annual interest

compounded quarterly, how long until there is $4500 in the account?

10. How much money would you need to deposit today at 5% annual interest

compounded monthly to have $20000 in the account after 9 years?

11. If you deposit $6000 into an account paying 6.5% annual interest

compounded quarterly, how long until there is $12600 in the account?

12. If you deposit $5000 into an account paying 8.25% annual interest

compounded semiannually, how long until there is $9350 in the account?

13. At 10% interest compounded continuously, what is the present value of $1,000 to be

received 8 years from now?

14. At 12% interest compounded annually, what is the present value of $1,000 to be

received 8 years from now?

15. At 12% interest compounded semi-annually, what is the present value of $1,000 to be

received 8 years from now?

16. At 12% interest compounded quarterly, what is the present value of $1,000 to be

received 8 years from now?

17. At 12% interest compounded monthly, what is the present value of $1,000 to be

received 8 years from now?

18. At 12% interest compounded continuously, what is the present value of $1,000 to be

received 8 years from now?

19. At 9% interest compounded annually, what is the present value of $1,000 to be

received 8 years from now?

20. At 9% interest compounded monthly, what is the present value of $1,000 to be received

8 years from now?

21. If you take a car loan for S25000 with an interest rate of 6.5% compounded quarterly, no

payments required for the first five years, what will your balance be at the end of those

five years?

22. What principle will amount to S3000 if invested at 6.5% compounded weekly for 4

years?

23. If S4000 is invested in an account paying 3% interest compounded monthly, what is the

balance after 7 years?

24. If S4000 is invested in an account paying 3% interest compounded daily, what is the

balance after 7 years?

25. If S4000 is invested in an account paying 3% interest compounded continuously, what is

the balance after 7 years?

26. If you invest S6.16 in an account paying 12% interest compounded continuously for 100

years, and that is all you have to leave your children as an inheritance, what will the final

balance be that they will receive?

27. A credit card charges an annual rate of 14% compounded monthly. This months bill is

$6000. The minimum payment is $125. Suppose I keep paying $125 each month. How

long will it take to pay off the bill? What is the total interest paid during that period?

28. Suppose you want an item which costs $10000. You can save for it at $200 per month in

an account earning 3% interest compounded monthly, or you can borrow at 8% paying

off at a rate of $200 per month. With both of these options how long will it take until

you have finished the payments? What is the total paid in each case?

29. A car dealer offers either 0% financing for 3 years or a $3000 rebate on a $25000 car.

Assuming that you could find a loan for 6% for 36 months which deal gives you a smaller

payment?

30. Mr A deposited $700 at the end of each month of calendar year 2010 in an investment

account of 9% annual interest rate. Calculate the future value of the annuity on Dec 31,

2011. Compounding is done on monthly basis.

31. Calculate the future value of 12 monthly deposits of $1,000 if each payment is made on

the first day of the month and the interest rate per month is 1.1%. Also calculate the

total interest earned on the deposits if the whole amount is withdrawn on the last day

of 12th month.

32. What amount will accumulate if we deposit $5,000 at the end of each year for the next

5 years? Assume an interest of 6% compounded annually.

33. What amount will accumulate if we deposit $5,000 at the beginning of each year for

the next 5 years? Assume an interest of 6% compounded annually.

34. At the end of each year for 4 years, Kobus deposits R 500 into an investment account. If

the interest rate on the account is 10% per annum compounded yearly, determine the

value of his investment at the end of the 4 years.

35. Ciza decides to start saving money for the future. At the end of each month she deposits

R 900 into an account at Harringstone Mutual Bank, which earns 8,25% interest p.a.

compounded monthly.

1. Determine the balance of Ciza's account after 29 years.

2. How much money did Ciza deposit into her account over the 29 year period?

3. Calculate how much interest she earned over the 29 year period.

36. Ruth decides to save for her retirement so she opens a savings account and immediately

deposits R 450 into the account. Her savings account earns 12% per annum

compounded monthly. She then deposits R 450 at the end of each month for 35 years.

What is the value of her retirement savings at the end of the 35 year period?

37. Musina MoneyLenders offer a savings account with an interest rate of 6,13% p.a.

compounded monthly. Monique wants to save money so that she can buy a house when

she retires. She decides to open an account and make regular monthly deposits. Her

goal is to end up with R 750 000 in her account after 35 years.

38. How much must Monique deposit into her account each month in order to reach her

goal?

a. How much money, to the nearest rand, did Monique deposit into her account by

the end of the 35 year period?

b. Every Monday Harold puts R 30 into a savings account at the King Bank, which

accrues interest of 6,92% p.a. compounded weekly. How long will it take Harold's

account to reach a balance of R 4397,53. Give the answer as a number of years

and days to the nearest integer.

c. How much interest will Harold receive from the bank during the period of his

investment?

39. On June 1, 2014, Grandma deposits $1,733 into an account to help pay for Emily's

summer volleyball camp for four consecutive years. The first camp is scheduled for June

2015. The account earns 6% interest per year, compounded annually. The interest

earned on the account balance is deposited into the account on May 31 of each year. If

Grandma wants the balance to be $0 at the end of the four years, how much should she

withdraw for Emily each June?

40. Your company plans to borrow $10,152 on January 1, 2015. You would like to repay the

loan by making six semiannual loan payments beginning on June 30, 2015. The

payments will be equal amounts and will cover a portion of both the interest (10% per

year compounded semiannually) and the principal repayment. The payments will be

paid on each June 30 and December 31. What will be the amount of each of the six

payments?