Simple & Compound Interest Questions and Answers

An invoice dated September 15, 2016, for $4,120.00 with terms 5/10, 1/30 ROG. What is the amount due if the goods are delivered (received) on December 24, 2016 and the invoice is paid on January 3, 2017? Amount Due =

You can afford a $300 per month car payment. You've found a 5 year loan at 5% interest. How big of a loan can you afford?

You have $2,500 on a credit card that charges a 18% interest rate. If you want to pay off the credit card in 3 years, how much will you need to pay each month (assuming you don't charge anything new to the card)?

You want to buy a $25,000 car. You can make a 10% down payment, and will finance the balance with a 2% interest rate for 60 months (5 years). What will your monthly payments be?

You can afford a $400 per month car payment. You've found a 5 year loan at 5% interest. How big of a loan can you afford? $

You want to be able to withdraw $50,000 each year for 15 years. Your account earns 7% interest. a) How much do you need in your account at the beginning? b) How much total money will you pull out of the account? c) How much of that money is interest?

You have $4,500 on a credit card that charges a 23% interest rate. If you want to pay off the credit card in 3 years, how much will you need to pay each month (assuming you don't charge anything new to the card)? ___________$ each month

Jenelle bought a home for $410,000, paying 12% as a down payment, and financing the rest at 5.2% interest for 30 years. Round your answers to the nearest cent. How much money did Jenelle pay as a down payment? $ What was the original amount financed? $ What is her monthly payment? $ If Jenelle makes these payments every month for thirty years, determine the total amount of money she will spend on this home. Include the down payment in your answer. $

Roberto bought a $470,000 house, paying 12% down, and financing the rest at 4% interest for 30 years. His monthly payments are $1974.59. How much will he really pay for his $470,000 house? Roberto will pay a total of $_________ for the house.

You want to buy a $214,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan for the rest. a) How much is the loan amount going to be? b) What will your monthly payments be if the interest rate is 6%? c) What will your monthly payments be if the interest rate is 7%?

You can afford a $1000 per month mortgage payment. You've found a 30 year loan at 6% interest. a) How big of a loan can you afford? Round your answer to the nearest dollar. b) How much total money will you pay the loan company? Round your answer to the nearest dollar. c) How much of that money is interest? Round your answer to the nearest dollar.

John takes out a loan of $9600 that charges 8% interest compounded monthly. If John makes $120 monthly payments, determine how long it will take him to pay off the loan. Round your answer up. John will pay off the $9600 loan after __________months.

You want to buy a car. The loan amount will be $24,000. The company is offering a 5% interest rate for 60 months (5 years). What will your monthly payments be?

You want to buy a $229,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan for the rest. a) How much is the loan amount going to be? b) What will your monthly payments be if the interest rate is 5%? c) What will your monthly payments be if the interest rate is 6%?

Suppose you want to have $600,000 for retirement in 20 years. Your account earns 6% interest. a) How much would you need to deposit in the account each month? $ b) How much interest will you earn? $

You want to be able to withdraw $45,000 each year for 30 years. Your account earns 8% interest. How much do you need in your account at the beginning?

Suppose you invest $150 a month for 8 years into an account earning 10% compounded monthly. After 8 years, you leave the money, without making additional deposits, in the account for another 25 years. How much will you have in the end? Suppose instead you didn't invest anything for the first 8 years, then deposited $150 a month for 25 years into an account earning 10% compounded monthly. How much will you have in the end?

Suppose you want to have $700,000 for retirement in 35 years. Your account earns 4% interest. How much would you need to deposit in the account each month?

Suppose you invest $200 a month for 4 years into an account earning 7% compounded monthly. After 4 years, you leave the money, without making additional deposits, in the account for another 27 years. How much will you have in the end?

You deposit $300 each month into an account earning 5% interest compounded monthly. a) How much will you have in the account in 35 years? Round to the nearest cent as needed. b) How much total money will you put into the account? Round to the nearest cent as needed? c) How much total interest will you earn? Round to the nearest cent as needed?

Suppose you want to have $800,000 for retirement in 35 years. Your account earns 9% interest. Round your answers to the nearest cent. a) How much would you need to deposit in the account each month? $ b) How much interest will you earn? $

Suppose you want to have $400,000 for retirement in 30 years. Your account earns 5% interest. Round your answers to the nearest cent. a) How much would you need to deposit in the account each month? $ b) How much interest will you earn?

You deposit $3000 each year into an account earning 6% interest compounded annually. How much will you have in the account in 15 years?

You can afford a $450 per month car payment. You've found a 3 year loan at 4% interest. How big of a loan can you afford?

You have $300,000 saved for retirement. Your account earns 3% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 15 years? Round your answer to the nearest dollar.

You want to buy a car. The loan amount will be $21,000. The company is offering a 4% interest rate for 36 months (3 years). What will your monthly payments be?

You can afford a $1100 per month mortgage payment. You've found a 30 year loan at 7% interest. a) How big of a loan can you afford? Round your answer to the nearest dollar. b) How much total money will you pay the loan company? Round your answer to the nearest dollar. c) How much of that money is interest? Round your answer to the nearest dollar.

You deposit $4000 each year into an account earning 5% interest compounded annually. How much will you have in the account in 25 years?

You want to buy a car. The loan amount will be $27,000. The company is offering a 5% interest rate for 48 months (4 years). What will your monthly payments be? $

Suppose you want to have $500,000 for retirement in 20 years. Your account earns 4% interest. Round your answers to the nearest cent. a) How much would you need to deposit in the account each month? b) How much interest will you earn?

The amount of $840 is invested quarterly at 3.9% compounded semi-annually for 12 years. The balance in the fund is then converted into an annuity. paying $380 at the end of every month. If the interest on the annuity is 2% compounded annually, what is the term of the annuity? Round properly. Answer in MONTHS.

find the amount of money owed at the end of four years if 60,000 is well at 5% per year compounded weekly and no payments are made on the loan simplified answer completely assume there 52 weeks in a year round answer to the nearest cent.

Suppose a bank has $500,000 in deposits and a required reserve ratio of 10 percent. Then required reserves are Multiple Choice $50,000 $5,000,000. $500,000. $10,000,

Considering the following bond: 12 year, semi-annual bond, 0.075 coupon, 0.04 YTM. Par is 1000. What should be the price of this bond? O 1,317.28 O 1,290.66 O 1,304.64 O 1,330.99

A person invested $6500 for 1 year, part at 5%, part at 11%, and the remainder at 13%. The total annual income from these investments was $721. The amount of money invested at 13% was $700 more than the amounts invested at 5% and 11% combined. Find the amount invested at each rate. The person invested $ ____at 5%, $____at 11%, and $______at 13%.

3. Which situation makes a monthly loan payment increase? a. Changing the loan term from 5 years to 4 years b. Changing the interest rate from 6% to 5% c. Using $500 from savings instead of borrowing d.Asking your parents for the money instead of the bank OA OB Oc OD

An investment broker deposits $10,000 into an account that earns 6% interest that is continuously compounded. What is the value of the investment after 5 years? Use the formula A(t) = Pe^t O a $13497.59 Ob. $13498.59 Oc$13499.59 Od. $13500.59

Suppose you deposit $5000 at 7% interest compounded continously. Find the average value of your account during the first 4 years.