Intro to Financial Mathematics

Robert deposits $3,000 in the bank that accrues 8% interest annually. What is the $ amount in the account after 3 years? (Input the amount with NO $ sign)

Tags

Interest

Logan puts $500 into an account to use for school expenses in college. The account earns 8% interest, compounded annually. How much will be in the account after 5 years? (Give the amount with NO $ sign & round to two decimal places.)

Tags

Compound Interest

A couple invest $50 into a college fund for 6 years. What is the amount in the fund if the account earns 6% interest monthly? (Give the amount with NO $ sign and round to two decimal places.)

Tags

Annuity

Your company estimates that it will need to replace a piece of equipment in 5 years at a cost of $800,000. To do this a sinking fund is established by making equal monthly payments into an account making 6.6% compound monthly. How much should each payment be? (Give the amount with NO $ sign and round your answer to two decimal places.)

Tags

Sinking Fund

What is the monthly payment on a mortgage loan of $120,000 with a monthly interest rate of 0.458% that runs for 25 years? (Give the amount with NO $ sign and round to a whole dollar amount.)

Tags

Amortization

You deposit $9,000 into a savings account. ABC bank offers 12% interest, compounded monthly, while King Bank offers 12% interest, compounded annually. Which bank has the better offer? (Hint: use FV/PV formula.)

Tags

Future/Present Value