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How much simple interest is earned on a deposit of 800 at a annual rate of 5 percent after two years?
It is 80 currency units.
How much did Kate invest if she earned 1800 in 8 years at a 5 percent annual simple interest rate?
Kate invested 4500.
You want to invest annualy for 30 years and earn interest for an additional 5 years to end up with 2000000 dollars at the end of 35 years so what is your annual payment?
That completely depends on what rate of interest you can expect your investment to earn, and how often you can expect the investment interest to be compounded. The assumed rate of interest has more effect on the final value than even the annual payment has, yet the question ignores it completely.
What is the amount of money P that will generate 40 in interest at a 10 interest rate over 5 years?
Oh, dude, it's like super simple math. So, to calculate the principal amount P, you just divide the interest by the interest rate times the number of years. In this case, 40 divided by (10% times 5 years) gives you the principal amount P. That's like, what, 80 bucks? Math is fun, right?
What is the future value of 1000 dollars in 5 years at interest rate of 5 percent compounded semi-annually?
The first responder posted this response:$1,280.08====================================The next responder posted this response:Assuming the 5% interest rate is the nominal annual rate, the first step is to calculate the effective interest rate.ieffective = (1+r/m)m - 1where r is the nominal rate (.05) and m is the compounding periods per year (semiannual = 2 compoundings per year).ieffective = (1+.05/2)2 - 1 = .0506Simply use this effective rate to solveFuture Value = Present Value * (1+i)nwhere i is the effective interest rate and n is the number of years.F = 1000*(1+.0506)5 = $1280.08
