Identify the financial formula

Identify the financial formula required to solve:

Determine the future value of a retirement fund after 40 years with a monthly deposit of $130 at a fixed rate of 6% p.a. compounding monthly.

• Present value

• Future value

• Compound interest

• Recursive formula

Identify the financial formula required to solve:

Keiran is about to start university for 4 years.  He has been informed he will need $200 per month for accommodation.  How much needs to be invested now at a rate of 4.2% p.a., compounding monthly, to cover his costs?

• Present value

• Future value

• Compound interest

• Recursive formula

Identify the financial formula required to solve:

$25 000 is deposited into an annuity earning 2.93% p.a. compounded weekly. Determine the weekly payments made to the owner if the annuity is fully amortised in 5 years.

• Present value

• Future value

• Compound interest

• Recursive formula

Identify the financial formula required to solve:

Monica wants to go overseas in exactly 2 years time.  Her budget is $25 000 for the holiday.  Interest is calculated at a rate of 4.5% p.a. compounding fortnightly.  How much does Monica need to deposit each fortnight from now to save for her trip?

• Present value

• Future value

• Compound interest

• Recursive formula

Identify the financial formula required to solve:

After selling an investment property, a couple invest $412 000 in an annuity earning 3.14% p.a. compounded monthly, in order to make an additional contribution to their retirement for 30 years. determine the monthly payment they will receive.

• Present value

• Future value

• Compound interest

• Recursive formula

Identify the financial formula required to solve:

Calculate the future annuity value for the first three months of a car loan of $15 880 compounded monthly at 6% p.a. with monthly repayments of $210 each month. Write your answers correct to the nearest cent.

• Present value

• Future value

• Compound interest

• Recursive formula

Identify the financial formula required to solve:

Thomas has the goal of saving $400 000 for his retirement in 25 years. If the best interest rate that Thomas can obtain is 10% p.a., with interest compounded annually, calculate the amount of each annual contribution that Thomas will need to make.  

• Present value

• Future value

• Compound interest

• Recursive formula

Identify the financial formula required to solve:

Pierre used his tax return of $1 259.08 to open a savings account that paid interest of 4.15% p.a. calculated monthly on the account balance. He plans to add to this account by depositing $100 each month to save for a holiday at the end of his university course in 4 years. Determine Pierre's account balance at the end of the 4 year period.

• Present value

• Future value

• Compound interest

• Present and compound

• Future and compound

Identify the financial formula required to solve:

Kieran is going away to university for 4 years and needs to earn $200 per week. How much needs to be invested now at a rate of 4.2% p.a. compounding weekly.

• Present value

• Future value

• Compound interest

• Recursive formula

Identify the financial formula required to solve:

Tam deposits a fixed amount at the end of each month into an account paying 8.6% p.a. compounding monthly. From an initial zero balance, she accumulates $51 343.85 in four years.

A financial planner has advised Tam that she would have been at least $3 000 better off if she had instead deposited half of the fixed amount at the end of each fortnight into an account paying 7.9% p.a. compounding fortnightly. Evaluate the reasonableness of this advice.

• Present value

• Future value

• Compound interest

• Recursive formula