Saturday, July 25, 2020

Finance Part 1 - Practice Problems and Answers (#8)

Problems:

A friend lends you $200 for a week, which you agree to repay with 5% interest.  How much will you have to repay?

Suppose you obtain a $3,000 T-note with a 3% annual rate, paid quarterly, with maturity in 5 years.  How much interest will you earn?

You deposit $300 in an account earning 5% interest compounded annually.  How much will you have in the account in 10 years?

How much will $1,000 deposited in an account earning 7% interest compounded annually be worth in 20 years?

Answers:






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