







A problem involving simple interest 
20120927 

From Tash: The amount of money in a single year of an investment after P dollars were initially invested is A = P + Prt, where r is the rate of simple interest. What expression describes P? How much money was initially invested if the account has $1000 one year after the initial investment and the interest rate was 5%? Answered by Penny Nom. 





Simple interest 
20111211 

From sandeep: Use the formula I = Prt to solve.
Damon deposits $500 into a savings account that pays simple interest
at a rate of 0.65% per year. How long will it take Damon to earn $130
in interest? Answered by Penny Nom. 





Susan's RRSP 
20090805 

From Polly: Susan contributed $500 every 6 months for 14 years into a RRSP earning interest @ 7.5% compounded semiannually. Seven years after the last contribution Susan converted the RRSP into a RRIF which is to pay her equal 1/4 payments for 16 years. If the first payment is due 3 months after the conversion into the RRIF and the interest on the RRIF is 9% compounded 1/4, how much will Susan receive every 3 months? Answered by Stephen La Rocque. 





Investing in multiple accounts 
20090626 

From Kenneth: Hello:
If an investor has $1000.00 to invest in multiple accounts, and he
wants a total return of 4%, is there one calculation that can be used
to determine what these amounts could be even though there may be
numerous amounts used as answers for most of the following examples?
For example,
Invest $1000.00 @ 2% and 5% for total return of 4%.
Invest $1000.00 @ 2%, 3% and 5% for total return of 4%.
Invest $1000.00 @ 2%, 3%, and 5% for total return of 4%.
Invest $1000.00 @ 2%, 3%, 4% and 5% for total return of 4%.
etc. Answered by Robert Dawson. 





What was the annual interest rate? 
20080318 

From Javier: A business invests $10,000 in a savings account for two years. At the beginning of the second year, and additional $3,500 is invested. At the end of the second year, the account balance is $15,569.75. What was the annual interest rate? Answered by Penny Nom. 





Simple interest 
20071108 

From Lee: If a bank pays 3% simple interest anually on savings, and you did not take any money out of your account, how much money would you have deposited to earn $45 in interest Answered by Stephen La Rocque. 





Which compounding period will make the interest rate be as low as possible? 
20070327 

From lilly: if i decide to loan a friend 12000 and he said that he will pay it back in a single payment of 16000 after 5 years.
which compounding period will make the interest rate be as low as possible? daily or yearly?
how can i calculate each (yearly compound and daily compound)? Answered by Penny Nom. 





Annualized 
20070103 

From Dan: What would my rate of compound interest be per month? Invested $80,000 and in 150 days have increased that amount by $14,300. Answered by Stephen La Rocque. 





What is the interest on $50,000.00 at 5% for 40 days? 
20060712 

From A borrower: What is the interest on $50,000.00 at 5% for 40 days? Answered by Penny Nom. 





Interest computed on a 360 per year basis 
20060406 

From Sonya: Okay, I am reading this promissory note that says interest is computed on 365/360 basis by applying the ratio of annual interest rate (24%) over a year of 360 days.
I sure do not remember anything like this in school, and am stumped. Answered by Stephen La Rocque. 





Pat invested a total of $3000 dollars 
20051214 

From Duane: Pat invested a total of $3000 dollars. part of the money yields 10 percent interest per year and the rest yields 8 percent interest per year if the total yearly interest is $256 how much did pat invest at 10 per cent and how much at 8 percent. Answered by Penny Nom. 





A loan of $50,000 
20051214 

From Fre: A loan of $50,000 taken today is payable within five years.
a. determine the annual payments within to be made to repay the loan if interest is charged at a rate of 10% compounded annually
b. show the amortization schedule Answered by Penny Nom. 





Three debts 
20050203 

From Kat: If I have three debts and 49% percent of total debt is loaned at 9% intrest, 34% of the debt is at 21% intrest and 17% of the total debt is at 14% intrest, how do I calculate the average rate of intrest on total debt? Answered by Penny Nom. 





$25,000 at 11% per year 
20041013 

From A student: suppose u have $25,000 to invest and the interest rate at your bank is 11%.
1) how much money would you have at the end of EACH of the first four years?
1) i already kno that the first year w/ interest is $27,750 but how do i get the 2nd? 3rd? 4th? years? Answered by Penny. 





$20,000 at 25% compounded daily 
20040203 

From A student: Hi there, I'm tying to figure out how much interest I would pay on 20,000 if it was 25% compounded daily. Answered by Penny Nom. 





Interest compounded daily 
20030624 

From Jeff: What would be the amount of interest charged or accrued and how is it calculated on principal balance of $209.12 @ 6% interest rate compounded daily for 70 days? Answered by Penny Nom. 





Cash advance 
20010328 

From A student: dulani has a new credit card. it says: you can get cash advances wherever you are. whenever you want. also if you pay off your balance in full each month for a small transaction fee, the cash is interest free. (see important information on reverse side. On reverese side it says: cash advance transaction fee: $500 or less 2.5%; $500.01 to $1000.002%; $1000.01 or more 1.5%; $2.00 minumum.
Annual percentage rater for cash advances 19.8%. dulani wants to know what a cash advance will really cost. Analyze the cash advance terms given here. how much would he pay for a $20 cash advance? What about a $450 cash advance? What annual interest rate are these charges equivalent to? choose other amounts. determine cost and annual ratees for these as well. make recommendations to dulani. Answered by Penny Nom. 





Isolating an exponent 
20000924 

From C. Scott: Suppose you invest $500.00 in an account that pays 10% interest compounded annually. How long will it take for this value to triple? A=p(1 + i)^{a} A=1500 i=0.1 1500=500(1.1)^{a} p=500 a=unknown How do you solve this problem algebraicly? How do you isolate the variable (a) when it is an exponent? Answered by Harley Weston. 





Compounding continuously 
20000321 

From Gina: You deposit $1500 in an account that pays 6.5% annual interest, compounded continuously. Find the balance after 10 years. I'm not sure what to do with the "compounded continuously" part. Answered by Penny Nom. 





Saving for college 
20000301 

From Andrew Kunz: SAVING FOR COLLEGE In this project, you will forecast a friend's finances. Jane has received $75 from her grandparents on every birthday since she was one year old. She has been saving the money in an account that pays 5% interest. She is saving her money to help you pay for her college education, which she will start this fall after her 18th birthday. She also has been receiving birthday checks from her other relatives, but these didn't start until she was 12 years old. The amounts of these checks from her 12th birthday until her 18th birthday are $45, $45, $55, $50, $55, $60, $65. How much money will she have saved just from her birthdays by the time she starts college? IS this a reasonable amount to pay for a used car during her junior year in college? If she had invested her money in a different accoutn that had earned 7% interest, how much more money would she have saved? Answered by Penny Nom. 





Solving using logs 
19991011 

From Rich Bolton: Here's my question: $541.39(1+i)^{15}=784.09 Can you please show me how to do this? Answered by Penny Nom. 

