Finance Solver: compound interest and depreciation Problem set A

Write down N for each of these.

1. (a) 5 years, compounded quarterly
2. (b) 30 months, compounded monthly
3. (c) 12 years, compounded half-yearly
4. (d) 3 years, compounded monthly

Find the final value.

1. (a) €4000 at 3.2% per year, compounded yearly, for 6 years
2. (b) €7500 at 2.4% per year, compounded monthly, for 5 years

How much must be invested now at 3.6% per year, compounded quarterly, to have $10 000 in 8 years?

£2000 is invested at 5% per year, compounded yearly. After how many complete years is it first worth more than £3000?

$5000 grows to $6200 in 4 years, compounded yearly. Find the annual interest rate.

$4000 is invested at 3.6% per year, compounded monthly. How long will it take for the investment to be worth $5000? Give your answer in complete months, and then in years and months.

A laptop costs £1200 and loses 22% of its value each year. (a) Find its value after 3 years. (b) After how many complete years is it first worth less than £300?

€8000 is invested at 4.5% per year, compounded yearly, for 5 years. Inflation is 2% per year. Find the value of the investment in real terms.

Maria has £6000 to save for 10 years. Account X pays 5.2% per year, compounded annually. Account Y pays 5.1% per year, compounded monthly. Which account gives her more at the end of 10 years, and by how much?

A tractor is bought for $30 000 and loses 16% of its value each year. (a) Find its value after 3 years. (b) After how many complete years is it first worth less than half of its price?

$12 000 is invested at 3.9% per year for 15 years. Find how much more it is worth if the interest is compounded monthly rather than yearly.