Banking Formulas

Lillian wants to save enough money to go on a senior trip. She thinks she needs about $3,000 in order to pay for everything. How much money will she have to save each week for 12 months with an account that pays 1.65% interest, compounded weekly? 

• Compound Interest (Future Value of a Single Deposit)

• Present Value of a Single Deposit

• Future Value of a Periodic Deposit

• Present Value of a Periodic Deposit

When Tristan was born, her aunt invested $5,000 in an account that was locked into a 5.25% interest rate, compounded quarterly. How much will Tristan have if they give the money to her on her 18th birthday?

• Compound Interest (Future Value of a Single Deposit)

• Present Value of a Single Deposit

• Future Value of a Periodic Deposit

• Present Value of a Periodic Deposit

Sam and Michael are both 30 years old. They open an account at the Mission Savings Bank in order to save some money for retirement at age 65. They deposit $100 each week into an account that pays 5.95% interest, compounded weekly. Find the balance in their account when they retire.

• Compound Interest (Future Value of a Single Deposit)

• Present Value of a Single Deposit

• Future Value of a Periodic Deposit

• Present Value of a Periodic Deposit

Jessica invests $6,200 in an account that pays 1.75% annual interest, compounded quarterly. What is her balance, to the nearest cent, at the end of 10 years? 

• Compound Interest (Future Value of a Single Deposit)

• Present Value of a Single Deposit

• Future Value of a Periodic Deposit

• Present Value of a Periodic Deposit

David wants to buy two dirt bikes in 6 years. He estimates the total cost to be $8,500. How much must he deposit monthly into an account that pays 2.25% interest, compounded monthly, in order to have enough money?

• Compound Interest (Future Value of a Single Deposit)

• Present Value of a Single Deposit

• Future Value of a Periodic Deposit

• Present Value of a Periodic Deposit 

Mr. and Mrs. Sanchez know that in 15 years they are going to help their daughter buy a house. She will need about $35,000 for her down payment. How much should Sanchez's deposit now into an account that yields 4.59% interest, compounded semiannually, in order to have that amount? 

• Compound Interest (Future Value of a Single Deposit)

• Present Value of a Single Deposit

• Future Value of a Periodic Deposit

• Present Value of a Periodic Deposit 

Kim just graduated from college and started her job as a nurse. She knows she wants $20,000 in her savings account after 10 years. How much must she deposit in that account now at a 2.99% interest rate, compounded weekly, in order to meet that goal? 

• Compound Interest (Future Value of a Single Deposit)

• Present Value of a Single Deposit

• Future Value of a Periodic Deposit

• Present Value of a Periodic Deposit 

Jessica and Moses open an online savings account that has a 2.99% annual interest rate, compounded monthly. If they deposit $1,200 every month, how much will be in the account after 10 years? 

• Compound Interest (Future Value of a Single Deposit)

• Present Value of a Single Deposit

• Future Value of a Periodic Deposit

• Present Value of a Periodic Deposit