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Home Aptitude Compound Interest Comments

  • Question
  • 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


  • Options
  • A. 245678
  • B. 234689
  • C. 281468.06
  • D. 234578

  • Correct Answer
  • 281468.06 

    Explanation

     

     

     

     

     

     

    R=S[i/(1+i)^n-1]

  • Tags: Bank Exams, Bank PO

    Compound Interest problems


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    • 1. 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

    • Options
    • A. 251.35
    • B. 245.45
    • C. 235.87
    • D. 251
    • Discuss
    • 2. 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

    • Options
    • A. 75263.64
    • B. 76345
    • C. 76389
    • D. 56897
    • Discuss
    • 3. What lump sum deposited today would allow payments of $2000/year for 7 years at 5% compounded annually?

    • Options
    • A. 11572.71
    • B. 11876
    • C. 189756
    • D. 11576
    • Discuss
    • 4. 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

    • Options
    • A. 22681.19
    • B. 23456
    • C. 44577
    • D. 25685
    • Discuss
    • 5. For S = $21,000, payments (R) of $1500 at the end of each 6-month periodi= 10% compounded semi-annually. Find the minimum number of payments to accumulate 21,000.

    • Options
    • A. 10
    • B. 11
    • C. 12
    • D. 13
    • Discuss
    • 6. Find the finance charge for an average daily balance of $8431.10 with monthly interest rate of 1.4%

    • Options
    • A. 98.04
    • B. 88.04
    • C. 68.04
    • D. 118.04
    • Discuss
    • 7. A loan is made for $3500 with an interest rate of 9% and payments made annually for 4 years. What is the payment amount?

    • Options
    • A. 8906
    • B. 1089
    • C. 1070
    • D. 1080.34
    • Discuss
    • 8. 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?

    • Options
    • A. 622.80
    • B. 522.80
    • C. 322.80
    • D. 632.80
    • Discuss
    • 9. Calculate the periodic interest rate corresponding to:9.0% compounded quarterly

    • Options
    • A. 3.45
    • B. 2.25
    • C. 5.25
    • D. 6.25
    • Discuss
    • 10. Calculate the periodic interest rate corresponding to 9.5% compounded monthly

    • Options
    • A. 0.7916
    • B. 0.8916
    • C. 0.9916
    • D. 0.6916
    • Discuss


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