Compound Interest — Unit test Answers

Money is invested into an account earning 4.25% interest compounded annually. If the accumulated value after 18 years will be $25,000, approximately how much money is presently in the account?

An investment of $7,650 earns interest at the rate of 5% and is compounded quarterly. What is the accumulated value of the investment at the end of 9 years?

In the formula I=P·r·t, what does P stand for?

Nicole deposits $2,136 in a savings account paying 5.36% interest. To the nearest dollar, how much money does Nicole have in total after nine years?

June has a savings account with an annual simple interest rate of 2.6%. She hopes to gain $6,500 in interest over a period of eleven years. To accomplish this, June invested $17,801 in the account, but later realized that this was not enough money. To the nearest dollar, how much more money should June have initially invested to reach her goal?

Examine today’s stock listing for SFT Legal, shown below.52 wk High52 wk LowSymbolDiv.CloseNet Change74.8044.61SFT8.9456.115.74What was the price of SFT Legal yesterday?

In the formula I=P·r·t, what does r stand for?

Henry and Walter open savings accounts at the same time. Henry invests $6,500 at 4.54% simple interest, and Walter invests $7,100 at 4.74% simple interest. After eight years, how much more interest has Walter earned than Henry?

Ken has just retired. His Roth IRA has a present value of $524,856.00 and has an interest rate of 3.4%, compounded annually. In addition, he receives a yearly pension of $32,615.12. Given that Ken plans to draw from his Roth IRA for the next fifteen years, find his total annual income.

If you invest $8,600 at a 3.95% simple annual interest rate, approximately how long will it take for you to have a total of $21,000?

What is the difference between inflation and deflation?

If you wish to calculate the interest on an investment with a rate of 6.17%, what number will you plug into your equation?

nominal measurementconsumer price indexannual rateUS Bureau of Labor statistic

An investment of $1,000 is earning interest at the rate of 3.8% compounded daily over 3 years. Approximately how much interest is earned on the investment?

What are the signs of low inflation? Check all that apply.Demand steadily rises.Demand steadily falls.Prices continue to increase.Prices continue to decrease.The economy grows in a healthy way.The economy stagnates and struggles.

Will is 30 years old and works for a company that matches his 401(k) contribution up to 3%. The interest rate for his 401(k) is 7.13%. If he puts away 9% of his $41,000 salary every year, how much would he have saved in 10 years? Round your answer to the nearest cent.

Darryl’s portfolio includes 66 shares of Essentia Inc., 95 shares of SFT Legal, and 180 shares of Grath Oil. If Essentia Inc. pays a yearly dividend of $1.79 per share, SFT Legal pays $2.62 per share, and Grath Oil pays $1.18 per share, how much does Darryl receive in dividends every year?

Determine the amount needed such that when it comes time for retirement, an individual can make semiannual withdrawals in the amount of $15,265 for 35 years from an account paying 4.5% compounded semiannually. Round your answer to the nearest cent.

Which of the following services will be provided by a full-service broker but not by a discount broker?I. Research of potential investment opportunitiesII. Purchase and sale of stock at your requestIII. Recommendation of investments

Stephen bought 85 shares of United Rotators at $6.34 each, 110 shares of Dowc Beverage Co. at $13.13 apiece, and 133 shares of Esti Transport at $7.10 each. If Stephen’s broker collects a commission of $12.50 for every ten shares bought or sold, how much did Stephen spend in total, to the nearest dollar?