As a part of your savings plan at work, you have been depositing Kes 250 per quarter

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Question:

As a part of your savings plan at work, you have been depositing Kes 250 per quarter in a savings account earning 8% interest compounded quarterly for the last ten years. You will retire in 15 years and want to increase your contribution each year from Kes1,000 to Kes 2,000 per year, by increasing your contribution every three months from Kes 250 to Kes 500, which will continue to earn 8% APR compounded quarterly. Additionally, you have just inherited Kes10,000, which you plan to invest now to earn interest at 12% compounded annually for the next 15 years. How much money will you have in savings when you retire 15 years from now?

You recently received a letter from Cut-to-the-Chase National Bank that offers you a new credit card that has no annual fee. It states that the annual percentage rate (APR) is 18 percent on outstanding balances. What is the effective annual interest rate (annual percentage yield)? (Hint: Remember these companies bill you monthly)

Your company has received a Kes 50,000 loan from an industrial finance company. The annual payments are Kes 6,202.70. If the company is paying 9 percent interest per year, how many loan payments must the company make?

Suppose that you wish to save for your child's college education by opening up an educational IRA. You plan to deposit Kes100 at the end of each month into the IRA for the next 18 years. Assume that you will be able to earn 10%, compounded monthly on your investment. Now imagine after 18 years after you complete the Kes100 monthly deposits, your child (age 18) earns college scholarships and doesn't need the IRA funds and decides to roll the funds over into a retirement IRA that will be able to earn a nominal annual rate of 10% compounded monthly.

How much will your child have at age 60 assuming no additional funds are added to the original educational IRA funds?