Tutorial II

Compound Interest Using the following formula work out the total compounded interest in each situation: (Where P = principal, r = interest rate, n = number of years)

a. £7500 invested at 7% for 6 years

Using the following formula work out the total compounded interest in each situation: (Where P = principal, r = interest rate, n = number of years)

£3750 invested at 4.5% for 4 years

Using the following formula work out the total compounded interest in each situation: (Where P = principal, r = interest rate, n = number of years)

c. £11,300 invested at 2.9% for 8 years

The future value of £5000 receiving 5% interest annually, with interest payable twice per annum over a 6 year period.

The present value of £8500 which has received 3% interest per annum, payable quarterly, over a 4 year period.

The future value of £9600 receiving 4% interest annually, with interest payable 4 times per annum over a 4 year period.