Decide how much money you would like to have in a savings account in ten years. (State this amount clearly):

A) If you can get 2.5% interest compounded monthly, how much do you need to deposit each month in order to reach your savings goal exactly?

B) If you can afford to deposit $150 per month, what interest rate do you need (compounded monthly) in order to reach your savings goal exactly?

 

Your car broke down and your rent is overdue. Your bank account is also empty but you will be getting a check for $1500 in nine weeks. Desperate, you turn to a payday lender and borrow $600. They charge 170% interest compounded weekly. 

If you don't make any payments until your check arrives in nine weeks, how much will you owe at that time? 

Answer rating: 100% (QA)

A Savings Goal Amount Lets say you want to have 50000 in the savings account in ten years B Monthly ... View the full answer