Pick the Finance Formula

Mary has $32 800 to invest now and would like this to grow to at least $37 000 over a period of six years. If Mary’s investment earns interest that compounds quarterly, what is the minimum annual percentage interest rate (rounded to one decimal place) that she would require in order to achieve his savings goal?

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Peter invests $87 000 at a simple interest rate of 3% pa. What is the total interest earned after two years?

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The purchase price of a car is $68 000. The value of the yacht depreciates by 9% pa. Calculate (correct to the nearest dollar) the salvage value of the yacht after 8 years.

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Colin invests $25 000 for 3 years and earns $2650 in flat rate interest. At what interest rate was the money invested?

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Aaron is starting a new job. His salary each week will be $595 and his employer will pay 9% of this into a superannuation account for him. This superannuation will earn interest at 6.08% pa, compounding weekly. How much money will Aaron’s employer deposit into the account each week? Assume that the interest rate for this account does not change. Calculate the balance of Aaron’s superannuation account after 20 weeks of work.

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An amount of $7500 is borrowed by Karen at a simple interest rate of 2.9% pa. How long was the money borrowed if the interest paid was $880?

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Ava invests $9200 earns compound interest at 3.5% pa compounding quarterly. What will the balance be after 3 years?

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Trudy invested her superannuation of $295 000 in an annuity that will pay her interest at the rate of 5.92% pa, compounding monthly. Trudy will withdraw a monthly payment of $3900 from this investment. What will the balance of Trudy’s investment be worth after 12 years?

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Paul would like to invest $53 000 into an account that will pay him compound interest at the rate of 3.2% pa, compounding monthly. What is the value of Paul’s investment after 8 years?

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Brad would like to borrow $26 000. He is deciding between two loan options: Option A: 4.95% pa compounding weekly or Option B: 5.6% per annum compounding quarterly. Calculate the effective rate annual rate of interest for) each investment. Which option is the best and why?

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