Simple & Compound Interest Questions and Answers

The latest Y Phone comes in 3 different models X2 X Plus X SE Each of those models comes with 2 different storage capacity levels 256GB and 512GB Each of the models also comes in 4 different colors Black Red Gold and White How many different types of these latest Y Phones are being manufactured Model Options Storage Options Color Options

Now that you have chosen your vehicle you will need to determine how much you will be paying per month for your car payment You find a bank that will lend you the money for 6 2 compounded quarterly or 7 8 compounded annually You will determine the monthly cost and total cost using both scenarios You will be able to change the amount of your monthly payment based on the length of your loan So using the price for your car determine the amount of your monthly payment based on the length of the loan the total amount that you will pay for the car and the total amount of interest that you will have to pay Original cost of the car The amount of your monthly car payment over 48 months The amount of your monthly car payment over 60 months The amount of your monthly car payment over 72 months Total amount you will eventually pay for your car Total amount of interest you will pay on your loan Car payments with a 6 2 compounded quarterly Car payments with 7 8 compounded annually

A lender offers you a mortgage with an APR of 4 08 with monthly compounding What is the effective rate of interest charged by the lender Answer Format Percentage Round to 2 decimal places Example 9 24 sign required Will accept decimal format rounded to 4 decimal places ex 0 0924

A consulting project will generate revenue of 20 784 44 next quarter Revenues will increase by 1 00 per quarter for a 3 33 year period If the consulting firm wants a 10 88 APR with quarterly compounding return on their projects what is the value of the project to the firm today Answer Format Currency Round to 2 decimal places

An investor is considering the following opportunity He will put capital into a start up company today He will not receive any cash flows from the investment until end of the 5th year At that point he will receive 11 18 years of 15 100 00 per year If his discount rate on this investment is 17 73 what is the value of this opportunity today Answer Format Currency Round to 2 decimal places