Compound Interest Questions

• Sharon Stone deposits $2000 at the end of each year in an account earning 10% compounded annually. Determine how much money she has after 25 years. How much interest did she earn?
• Sharon Stone deposits $500 at the beginning of each 3 months in an account earning 10% compounded quarterly. Determine how much money she has after 25 years
• What lump sum deposited today would allow payments of $2000/year for 7 years at 5% compounded annually?
• Kashundra Jones plans to make a lump sum deposit so that she can withdraw $3,000 at the end of each quarter for 10 years. Find the lump sum if the money earns 10% per year compounded quarterly
• 15 semiannual payments are made into a sinking fund at 7% compounded semiannually so that $4850 will be present. Find the amount of each payment rounded to the nearest cent
• A retirement benefit of $12,000 is to be paid every 6 months for 25 years at interest rate of 7% compounded semi-annually. Find (a) the present value to fund the end-of-period retirement benefit. (b) the end-of-period semi-annual payment needed to accumulate the value in part (a) assuming regular investments for 30 years in an account yielding 8% compounded semi-annually
• Find the finance charge for an average daily balance of $8431.10 with monthly interest rate of 1.4%
• A loan is made for $3500 with an interest rate of 9% and payments made annually for 4 years. What is the payment amount?
• A loan is made for $4800 with an APR of 12% and payments made monthly for 24 months. What is the payment amount? What is the finance charge?
• Calculate the periodic interest rate corresponding to:9.0% compounded quarterly
• Calculate the periodic interest rate corresponding to 9.5% compounded monthly
• Determine the nominal rate of interest if: The periodic rate is 0.83% per month
• Other things being equal, would an investor prefer an interest rate of 10.5% compounded monthly or 11% compounded annually for a two-year investment?
• If an investment can earn 4% compounded monthly, what amount must you invest now in order to accumulate $10,000 after 3 years?
• Kramer borrowed $4000 from George at an interest rate of 7% compounded semiannually. The loan is to be repaid by three payments. The first payment, $1000, is due two years after the date of the loan. The second and third payments are due three and five years, respectively, after the initial loan. Calculate the amounts of the second and third payments if the second payment is to be twice the size of the third payment.
• What amount must you invest now at 4% compounded monthly to accumulate $10,000 after 3 year
• What periodic payment will an investor receive from a $9000, four-year, monthly payment GIC earning a nominal rate of 5.25% compounded monthly?
• At what rate of compound interest per annum will a sum of Rs 10000 become Rs 12321 in 2 years?
• If the amount received at the end of 2nd and 3rd year as Compound Interest on a certain Principal is Rs 2100, and Rs 2268 respectively, what is the rate (in %) of interest?
• A bank offers 15% compound interest per half year. A customer deposits Rs 7200 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by means of interest is