Alice and Bob invest $5000 every six months at 5.5% compounded half-yearly.
(a) What will their investment be worth after 3 years.
(b) How much interest have they earned?
Solve
Alice and Bob invest $2000 every six months at 7.5% compounded half-yearly.
(a) Use a spreadsheet function to find the value of the investment after 10 years.
(b) What contribution would be required for a future value of $80000?
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You invest $1000 every six months at 4.8% compounded half-yearly.
(a) Use a spreadsheet function to find the value of the investment after 10 years.
(b) What contribution would be required for a future value of $30000?
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Alice and Bob take out a reducing balance loan of $20000 at a rate of 8% compounded half-yearly for 3 years and agree to repay 3815.24 every six months.
(a) What will be the balance after 2 years.
(b) How much interest have they paid so far?
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You invest $1000 every three months at 3.6% compounded quarterly.
(a) What will your investment be worth after 18 months.
(b) How much interest have you earned?
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You take out a reducing balance loan of $10000 at a rate of 4% compounded quarterly for 3 years and agree to repay $888.49 every quarter.
(a) What will be the balance after 12 months.
(b) How much interest have you paid so far?
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