📘 finance

1. The choice between using the present value formula or the future value formula depends on what you want to find in your problem. 2. Use the **present value formula** if you want

1. **State the problem:** We need to find the current amount in a trust fund that was originally 345,000 invested 5 years ago at an interest rate of 15% compounded semiannually. 2.

1. **State the problem:** We have an initial investment (principal) of $700000$ compounded bimonthly at an annual interest rate of 8.4% for 4 years. We want to find the amount in t

1. **State the problem:** Ed borrows 500000 for 25 years at an annual interest rate of 2.74%, compounded monthly. We need to find his monthly payment. 2. **Identify variables:**

1. **State the problem:** We have a project with cash inflows of $5.00 million per year for 3 years, an upfront cost of $8.00 million, and a discount rate of 8%. The NPV is given a

1. The problem states that Sally inherits 8800 and invests it at an interest rate of 2.5% per year. 2. To find the interest earned in the first year, we use the formula for simple

1. **State the problem:** You need to find the simple interest on a principal of Rs. 500,000 borrowed for 5 years at an interest rate of 12% per annum. 2. **Recall the formula for

1. **State the problem:** Farah has 600000 in her RRSP and wants to buy an annuity that pays 3500 monthly with an interest rate of 5% compounded annually. We need to find how long

1. **State the problem:** Claudette has $560000 in capital and wants to withdraw equal payments at the end of each year for 20 years. The capital earns 7.5% interest compounded ann

1. **State the problem:** En. Haikal borrows 20000 at 7.5% annual interest compounded monthly.

1. **State the problem:** A person deposits 250000 in a bank with an annual compound interest rate of 10%. We need to find the amount he will receive after 6 years. 2. **Formula fo

1. **State the problem:** Stephy invested a portion of her prize money at an interest rate of 3.95% compounded semi-annually. After 4 years, the investment grew to 263106.90. We ne

1. **Problem statement:** Calculate the present value (PV) of lease payments of 700 at the beginning of every month for 9 years.

1. **State the problem:** Janet saves 500 at the beginning of every month for 15 years in a fund with an annual interest rate of 4.75% compounded annually. We need to find: a. The

1. **State the problem:** Janet saves 500 at the beginning of every month for 15 years in a fund with an annual interest rate of 4.75% compounded annually. We need to find the bala

1. **Problem statement:** Jaspreet deposits 100 at the beginning of every month into an RESP for 16 years. The interest rate is 4.50% compounded monthly for the first 11 years and

1. The problem asks for the accumulated value of the RESP (Registered Education Savings Plan) at the end of 11 years and 16 years, and the interest earned during the 16-year period

1. **Problem statement:** Natalie invests 2100 every 6 months for 11 years. For the first 8 years, the interest rate is 3.20% compounded semi-annually. For the next 3 years, the in

1. **Problem statement:** Natalie invests 2100 every 6 months for 11 years. For the first 8 years, the interest rate is 3.20% compounded semi-annually. For the next 3 years, the ra

1. **State the problem:** Lush Gardens Co. bought a truck for 66000. It paid 6600 as a down payment and financed the rest at 5.50% interest compounded semi-annually. Monthly paymen

1. **State the problem:** Lush Gardens Co. bought a truck for 50000. It paid 5000 as a down payment, so the financed amount is $50000 - 5000 = 45000$.