You opened a bank account 10 years ago with $1,000. Your current account balance is $1,500. 

How much interest on interest did you earn, if the interest paid is compounded annually?

Today you deposited $10,500 into a bank account that will provide you 11.5% interest per year. 

By how much your money will increase if you keep your money invested for 4 years?

Sam wants to give his daughter $70,000 to pay for her university education. The amount will be needed in 15 years when she is expected to start her university program. If he can earn 7% interest by depositing his money into a bank account, how much he should deposit today in order to get $70,000 in 15 years?

You would like to have $1 million in 20 years. You believe that you can earn an average of 10% on your money. You are thinking whether to deposit a lump sum today, or to wait and deposit a lump sum five years from today. 

How much more will you have to deposit as a lump sum if you wait for five years before making the deposit?

Your mom gave you $1,000 as a birthday gift on your eighteenth birthday, which you invested at a 5% annual rate. Today your investment is worth $1,477.46.

 How old are you today?

Answer rating: 100% (QA)

Solution To calculate the interest on interest earned we need to use the formula for compound interest A P1 rnnt Where A the final amount account bala... View the full answer