Personal Finance Flashcards
A) You deposit $10,000 in an account that pays 4.5% interest compounded quarterly. Find the future value after one year.
B)Using the calculated future value from the first part of the question, use the future value formula for simple interest to determine the effective annual yield.
A) 10458
B) 4.58
You borrow $1800 from your parents and promise to pay them back $2200 in nine months. What simple interest rate will you pay?
PERCENTAGE ROUNDED TO TWO DECIMAL PLACES
29.63
You deposit $12,000 in an account that pays 5.85% per year, compounded continuously. Find the future value after six years.
17046
Determine the effective annual yield (in a percentage) for the following investment:
5.6% compounded semiannually.
5.68
A) You deposit $6,500 in an account that pays 2.3% per year, compounded monthly. Find the future value after 8 years.
B) What is the amount of the interest you’ve earned after 8 years?
A) 7812
B) 1312
You deposit $1500 in an account that pays 4.15% with interest compounded daily. How much interest will you earn after one year? Assume 365 days in a year.
64
In six years you’re hoping to have an account with an accumulated value of $15,000. The account has a rate of 5.2% that is compounded semiannually. How much money must be deposited today if you are to reach your goal?
ROUND TO THE NEAREST DOLLAR
11024
A) You deposit $14,500 in an account that pays 4.3% interest compounded quarterly. What is the future value after five years?
ROUND TO THE NEAREST DOLLAR.
B) What is the amount of the interest that you’ve earned after five years?
ROUND TO THE NEAREST DOLLAR
A) 17957
B) 3457
Determine the effective annual yield for an investment that has a rate of 4.9% compounded monthly.
RECORD THE EFFECTIVE ANNUAL YIELD AS A PERCENTAGE ROUNDED TO TWO DECIMAL PLACES
5.01
You deposit $8,500 in an account that pays 6.4% interest compounded monthly.
A) What is the future value after one year?
ROUND TO THE NEAREST DOLLAR
B) Using your answer above, calculate the effective annual yield.
RECORD THE EFFECTIVE ANNUAL YIELD AS A PERCENTAGE ROUNDED TO TWO DECIMAL PLACES
A) 9060
B) 6.59
You take out a simple interest loan for $250,000 to purchase stock in Moderna. If your bank charges you a rate of 6.5%, how much interest do you owe after three full years?
48750
