📘 finance

1. **State the problem:** We want to find the initial amount $P$ to invest now at an interest rate of 6% per year, compounded continuously, so that the investment grows to $2500 in

1. **State the problem:** We want to find the initial investment amount $P$ that will grow to $2500$ in $5$ years with a continuous compounding interest rate of $6\%$ per year. 2.

1. **State the problem:** Leo takes out a loan of 2200 with simple interest at a rate of 2.5% per annum and repays it after 10 years. We need to find the total amount he has to pay

1. **State the problem:** We have £1400 deposited in an account with a simple interest rate of 7% per year.

1. **Problem statement:** Calculate the interest Alexandra will have earned from her account after 6 years. 2. **Formula used:** For simple interest, the formula is $$I = P \times

1. The problem is to calculate the simple interest earned on a principal amount of 4000 at an interest rate of 3.5% over 6 years. 2. The formula for simple interest is:

1. **Stating the problem:** Alexandra invests 4000 into a savings account with compound interest of 3.5% per year. We want to find: a) The amount of money in the account after 6 ye

1. **State the problem:** Holly deposits £550 into a savings account with simple interest at 2% per month. After 6 months, she buys a bike costing £590. We need to find how much mo

1. **State the problem:** Evie takes out a loan of 600 pounds with compound interest at 24% per year. We need to find how much she will owe after 12 years. 2. **Formula for compoun

1. **State the problem:** Brianna invested 3900 in an account with an interest rate of 5.2% compounded continuously. We need to find the future value after 18 years. 2. **Formula u

1. **State the problem:** We want to convert 138.75 pounds to euros given the exchange rate 1 euro = 0.8338 pounds. 2. **Formula:** To convert pounds to euros, use the formula:

1. **State the problem:** Calculate the present value (PV) of receiving 10000 per year for 5 years, starting in 2 years, with an interest rate of 9%. 2. **Formula used:** The prese

1. The problem is to verify if the calculation of the return on initial capital investment is correct. 2. The initial capital investment is calculated as the difference between two

1. **State the problem:** Calculate the initial yield of the commercial unit purchased by John and Marie. 2. **Definition and formula:** Initial yield is the ratio of the annual ne

1. **Problem Statement:** Calculate the accumulated value (Future Value) of an investment of $400 with an interest rate of 5% compounded $N$ times over a certain time period. 2. **

1. **State the problem:** Charlie buys furniture costing 5160 on 25 October with a credit card that has an interest rate of 15.4% per annum compounding daily. The due date for paym

1. **State the problem:** Calculate the net present value (NPV) of a project where the initial investment includes the cost of a machine and installation, and the project generates

1. **State the problem:** Calculate the average Accounting Rate of Return (AROI) for John's Bakery expansion project. 2. **Formula for AROI:**

1. **State the problem:** A firm buys a machine for 377000 today, expects to sell it for 132000 in 5 years, with a straight-line depreciation rate of 16% per year and a company tax

1. **Problem statement:** Mary is taking a $23000$ loan for 5 years and wants to compare monthly payments and total payments from two lenders with different annual interest rates.

1. **State the problem:** Laura Collins has a mortgage balance of $104000 with an 8% annual interest rate. She makes a monthly payment of $1040. We need to find: