Reference : Compound Interest
Q1. An investor has two investment options: Option A: Principal of $5,000 at 8% compounded annually for 6 years Option B: Principal of $5,000 at 7.5% compounded semi-annually for 6 years Which investment will yield a higher total amount?
Insufficient information to determine
Option B
Both will yield the same amount
Option A
Q2. A business loan of $50,000 is taken with the following conditions: Initial interest rate: 9% per annum Rate increases by 0.5% each year Compounded annually Loan tenure: 5 years Calculate the total amount to be repaid after 5 years.
$85,437
$78,342
$82,156
$75,625
Q3. An investment of $10,000 earns 12% compound interest annually. If the inflation rate is 5% per annum, what is the real rate of return?
6%
7%
7.5%
6.5%
Q4. A sum of $20,000 is invested at 9% per annum with continuous compounding for 4 years. Calculate the final amount.
$29,387
$27,145
$28,762
$26,532
Q5. An investor deposits $15,000 for 3.5 years at 10% compounded annually. Find the final amount.
$21,912
$20,856
$21,387
$20,325
Q6. Jane deposits $5,000 at the start of each year for 4 years in an account earning 8% compounded annually. What's the total value after 4 years?
$25,067
$23,454
$24,210
$22,680
Q7. An investment of $50,000 has following interest rates: 1st year: 6% 2nd year: 7% 3rd year: 8% Compute the final amount.
$65,098
$63,576
$64,322
$62,840
Q8. $10,000 invested at 9% for 5 years: Annual compounding, Semi-annual compounding, Quarterly compounding Which method yields the highest return?
All equal
Semi-annual
Quarterly
Annual
Q9. An investment loses 5% in the first year, gains 8% in the second year, and loses 3% in the third year. Initial investment is $20,000.
$21,387
$20,134
$20,756
$19,560
Q10. A $100,000 loan at 11% compounded annually requires annual payments that fully amortize the loan in 5 years.
$28,945
$27,235
$28,120
$26,500
*Other References : *
AP & GP : Link
Area : Link
Average : Link
Boat & Stream : Link
Height & Distance : Link
LCM & HCF : Link
Logarithm : Link
Percentage : Link
Profit & Loss : Link
Ratio & Proportion : Link
Simple Interest : Link
Speed Distance : Link
Time & Work : Link
Trains Problem : Link
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