This document contains 12 math word problems related to calculating interest earned on investments over time under different compounding schedules and rates. The problems involve calculating future and present values, time to triple an investment amount, interest earned on loans, and differences in amounts under continuous vs discrete compounding.
This document contains 12 math word problems related to calculating interest earned on investments over time under different compounding schedules and rates. The problems involve calculating future and present values, time to triple an investment amount, interest earned on loans, and differences in amounts under continuous vs discrete compounding.
This document contains 12 math word problems related to calculating interest earned on investments over time under different compounding schedules and rates. The problems involve calculating future and present values, time to triple an investment amount, interest earned on loans, and differences in amounts under continuous vs discrete compounding.
This document contains 12 math word problems related to calculating interest earned on investments over time under different compounding schedules and rates. The problems involve calculating future and present values, time to triple an investment amount, interest earned on loans, and differences in amounts under continuous vs discrete compounding.
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How long does it take a given amount of money to triple itself if the money is invested at a nominal rate of 15% compounded monthly? 2. What lump-sum amount of interest will be paid on a P1,000 loan that was made on August 1, 1976 and repaid on November 1, 1982, with ordinary simple interest at 8% per year. 3. Compute the effective annual interest rate in each of these situations: a. 10% compounded semiannually b. 10% compounded quarterly c. 10% compounded bimonthly 4. Exactly 140 years ago, my great-grandmother deposited $190 in a large New York Bank as part of a savings plan. She Forgot all about the deposit during her lifetime. Two Years ago the bank notified my family that the account was worth $200,000. What was the effective annual interest rate in this situation? 5. If P 5,000 shall accumulate for 10 years at 8% compounded quarterly, find the compounded interest at the end of 10 years. 6. In buying a computer disk, the buyer was offered the options of paying P250 cash at the end of 30days or P270 at the end of 120days. At what rate is the buyer paying simple interest if he agree to pay at the end of 120days? 7. If you borrowed money from your friend with simple interest of 12%, Find the present worth of P50,000 which is due at the end of 7months. 8. BY the condition of a will, the sum of P2000 is left to a girl to be held in trust fund by her guardian until it amounts to P50000.00. When will the girl receive the money of the fund is invested at 8% compounded semi-quarterly? 9. Compute the difference in the future amount of P500 compounded annually at nominal rate of 5% and if it is compounded continuously for 5 years at the same rate. Continuous Compounding: F = Pern Where r=nominal rate of interest n= number of periods 10. You borrow P3,500 for one year from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 18% per year. Compare how much money you will save or lose on the transaction. 11. P200,000 was deposited on January 1, 1988 at an interest rate of 24% compounded semiannually. How much would the sum be on January 1, 1993? 12. On his 6th birthday a boy is left an inheritance. The inheritance will be paid in a lump sum of P10,000 on his 21st birthday. What is the present value of the inheritance as of the boy’s 6 th birthday, if the interest is compounded semi-annually? Assume i=4%
