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Compound Interest - Questions

Question 1

Find the total value of $1680 invested for 3 years at 6.2% compounded interest per annum.

$2012.25

Question 2

Calculate the total interest amount earned on $9250 if it is invested for 54 months at 7.2% p.a. compounded rate of interest.

$3397.90

Question 3

$5000 is kept in a growth fund that promises 9.9% compounded rate of interest for 5 years. But after 5 years, due to marked fluctuations, only the value of 8.75% was realized. What is the deficit due to this market correction, to the nearest dollar?

$411

Question 4

What sum of money should be invested for 2 years at 6% p.a. compounded rate of interest so that the total return is $15000 (to the nearest dollar)?

$13350

Question 5

Calculate the compound interest earned on $6700 at 8.8% p.a. interest after

a) 18 months
b) 36 months

a) $903.58  b) $1929.02

Question 6

$10 000 is invested in Fund GrowDaily with a daily compounding interest rate of 0.02%.

a) What total return will be obtained from Fund GrowDaily in a non-leap year?
b) What annual compounded rate of interest, correct to 2 decimals, matches this return?
c) What total return value is obtained if the rate obtained in (b) is applied for another year to the initial sum?

a) $10757  b) 7.57%  c) $11571

Question 7

Choose which investment is the best of all in terms of total amount earned. All rates are applied based on compounding method.

A.

$1200 for 5 years at 5.6% p.a.

B.

$1350 for 4 years at 3.3% p.a.

C.

$1100 for 3 years at 10.5% p.a.

D.

$1400 for 2 years at 5% p.a.

$1100 for 3 years at 10.5% p.a.

Question 8

Samuel likes investing in mutual funds. He invested \($6,000\) in Fund A, \(3\) years ago that earned him \(7.5\%\) annual compounded interest. He also invested \($10,000\) in Fund B, \(2\) years ago that earned him \(9\%\) annual compounded interest. Calculate the following, to the nearest cent

a. What is the total value of Samuel’s investments as of today?
b. Which investment has earned Samuel more interest? 

\(a) $19334.78 \text{  b) Fund B}\)

Question 9

Find the final value of a bank account after \(4\) years, if the present value of \(\$12,000\) earns \({\rm{2}}{\rm{.4\% p}}{\rm{.a}}{\rm{.}}\) interest compounded quarterly

\(\$ 13.205.32\)

Question 10

For an investment of $15000, find the interest earned for 4 years at 6% p.a. compounded monthly. 

$4057.34

Question 11

For an investment of $10000, find the interest earned for 5 years at 4% p.a compounding quarterly. 

$2201.90

Question 12

The total value of an investment of $3000, compounding annually after 4 years is $3646.52.

Find the annual compound rate. 

5%

Question 13

The total value of an investment for 3 years at 4% compounding annually was $2755.92. Find the value of the original investment. 

$2450.00

Question 14

The total value of an investment of $4000, for \(n\) years at 5% compounding annually was $4862.03. Find the value of \(n\). 

4 years