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Worksheets2P Economic Engineering
Total questions: 36
Worksheet time: 31mins
When interest is calculated only once, we say the interest is _______________
How many months in 1 year?
How many weeks in 1 year?
How many days in 1 year?
(a)
Agnes is 35. If she invests $1000 now, and she hopes to earn 10% compounded annually, how much will her investment be worth when she retires at the age of 65? (Compound interest)
(a)
A certain certificate will pay the owner $1000 in the year 2020. If money is worth 8% compounded semi-annually, how much must you pay for the certificate in: a. 2015 (Variations on compound interest: present value)
(a)
(Variations on compound interest: present value) A certain certificate will pay the owner $1000 in the year 2020. If money is worth 8% compounded semi-annually, how much must you pay for the certificate in: b. 2010
(a)
A certain certificate will pay the owner $1000 in the year 2020. If money is worth 8% compounded semi-annually, how much must you pay for the certificate in: c. 2005 (Variations on compound interest: present value)
(a)
Suppose Agnes invested the $1000 at 10% when she was 25. How much would it be worth when she is 65? (Compound interest)
(a)
You have $2500 to invest, at 6% compounded monthly, over a period of 10 years. (Compound interest)
You have $2500 to invest, at 12% compounded monthly, over a period of 10 years. (Compound interest)
You have $2500 to invest, at 18% compounded monthly, over a period of 10 years. (Compound interest)
What simple interest rate would give you the same return as 6% compounded monthly? (Nominal and effective rates of interest)
The Grinders plan to save for their child’s education by depositing $40 a month into a special savings plan which pays about 8% compounded monthly. (Ordinary annuities)
a. How much would the annuity be worth after 1 year?
(a)
The Grinders plan to save for their child’s education by depositing $40 a month into a special savings plan which pays about 8% compounded monthly. (Ordinary annuities)
b. How much after 18 years?
(a)
The Wests need $9000 for their child’s education 6 years from now. How much should they put aside every month if they hope to earn 8.5% compounded monthly? (Annuity payments)
Imagine you wanted to be a millionaire 30 years from now. How much would you have to put into an annuity every year if you think you could earn 12% compounded yearly? (Annuity payments)
A series of equal payments at regular intervals.
Annum
Annuity
Dividend
Interest
A payment, usually quarterly, made to the owners of certain stocks.
Annum
Annuity
Dividend
Interest
Referring to one year.
Annum
Annuity
Dividend
Interest
The fee lenders charge to borrowers for the temporary use of money.
Annum
Annuity
Dividend
Interest
Interest rate it's expressed as much by one or as a percentage.
True
False
In the case of credits, you pay the interest.
True
False
In the case of investment, we pay interest.
True
False
In the case of investment, we get paid (the interest).
True
False
In the case of loans (when you borrow money $) you get paid (the interest).
True
False
Percentage of your income paid to the government.
Commission
Taxes
Retirement
Interest
If interest is compounded daily, then n =
How do you feel when you don't have $?
