It is about Math of Finance.
Questions 1:
A couple bought a house for $40,000 in 1970. They sold the house for $165,000 in 2015. Determine the manual rate of return.
Question 2:
A $3500 loan was settled ten years later with a payment of $8100. Determine the annual rate of return.
Question 3:.
A woman invested $400,000 in the stock market. Twenty years later she received $500,000. If interest is computed every three months, determine the nominal rate earned on the investment
Question 4:
A parent can invest $10,000 into a college education fund and receive $50,000 in 18 years, or the parent can invest $10,000 into an account which earns 12% compounded annually. Determine the annual rate of return for the first option and determine which option the parent should choose.
Question 5:
How long will it take $100 to grow to at least $150 at an interest rate of 9% compounded monthly?
Question 6:
How long will it take for money to at least triple at an interest rate of:
a) 5% compounded monthly?
b) 8% compounded monthly?
Question 7:
An amount of $375 is borrowed on January 22, 2016 at 16% interest compounded daily using the Banker's Rule. An amount of $416.98 settles the debt. On what date was the loan repaid?
Question 8:
Determine the number of days it will take for $100 to grow to $105 at 8% compounded Rule. Use the Banker's Rue.