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August 21, 2014

August 21, 2014

Posted by **Bob** on Wednesday, October 20, 2010 at 8:23am.

1. Julie invests $500 at 5% simple interest. How long will it take to double in value?

2. Helen won the lotto when she was 18 and invested all the money at 4.5% compounding annually. When she was 24 it was worth $145073. How much did she win in the lotto?

3. Jessica has $150000 to invest for three years. She researches three investment options. Calculate the interest each option would earn and select the best option.

a. 5% pa simple interest

b. 4.5% pa compounding monthly

c. 4.25% pa compounding annually

4. Calculate the interest earned for the month in this cash management account.

Account Balance | Interest Rate

> $30000 | 3.5%

$30000-$15000 | 2.95%

$15000-$5001 | 2.5%

$5000-$501 | 1.25%

$500 and under | 0.5%

Date | Transaction | Balance

1 April | Opening Balance | $24903.25

15 April | Deposit $13500 | $38403.25

23 April | Withdraw $30000 | $8403.25

- Math [Interest] -
**MathMate**, Wednesday, October 20, 2010 at 10:07amI'll try similar problems as the first two.

1. 10000 dollars at 4% interest would give 10000*4% = 10000*4/100=$400 per year.

To double, it would take 10000/400 = 25 years.

2. $1000 at 5% compound interest (compounded yearly) would give me in 5 years $1000*1.05^{5}= $1276.28.

If I received $4000 at the end of 5 years, I won (5 years ago, by proportions) $4000*(1000/1276.28)=$3134.10.

Give a try for #1 and #2 and the rest, and post what you've got. We'd be glad to help.

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