• 1. Suppose you invest $10,000 in a bank account at an interest rate of 6%. How much will you have in your account at the end of two years?

How much is simple interest and how much is compound interest?

2. If you start saving for retirement today and you save $50/month. How much will you have saved when you retire in 46 years if your investment earns an average of 9%?

3. The current cost of a 4-year college education is approximately $110,000. If it is estimated that this cost will increase by 5% per year, how much will it cost you to send your son/daughter to college 30 years from now?

4. You determine that you will need $2 million for retirement in 45 years, how much do you need to save each year if your investment earns the S&P statistical annual average of 9.4%?

5. If you invest $10,000 today, how many years will it take for you to double your $, if the annual interest rate is 6%?

6. You originally invested $1,000 in a savings account. If you withdrew $1,400 and the investment was earning an APR of 8%, how many years was your money invested?

7. You invested $2,000 into a savings account. At the end of five years, you close the account and withdraw $2,850. What was the annual rate of interest that you earned?

8. Suppose you put $10,000 into a savings account with an APR of 3%. How much will you withdraw after 3 years?

How much interest did you make?

How much is simple interest and how much is compound interest?

Answer rating: 100% (QA)

1 Simple interest PRT100 P Principal R Rate T Time P 10000 R 6 T 2 Years 10000 x 6 x 2100 120000100 ... View the full answer