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2.5.1: Exercises

  • Page ID
    83278
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    Section 2.5.1 Exercises

    1. You wish to have $3000 in 2 years to buy a fancy new stereo system. How much should you deposit each quarter into an account paying 8% compounded quarterly?
    2. You deposit $200 each month into an account earning 3% interest compounded monthly.
      1. How much will you have in the account in 30 years?
      2. How much total money will you put into the account?
      3. How much total interest will you earn?
    3. You deposit $1000 each year into an account earning 8% compounded annually.
      1. How much will you have in the account in 10 years?
      2. How much total money will you put into the account?
      3. How much total interest will you earn?
    4. Raymond has determined he needs to have $800,000 for retirement in 30 years. His account earns 6% interest.
      1. How much would he need to deposit in the account each month?
      2. How much total money will he put into the account?
      3. How much total interest will he earn?

    This page titled 2.5.1: Exercises is shared under a not declared license and was authored, remixed, and/or curated by Leah Griffith, Veronica Holbrook, Johnny Johnson & Nancy Garcia.

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