What is the amount of simple interest, I, paid on an investment of P at an interest rate of r (expressed as a decimal) for n years?
If I invest £1000 at a simple interest rate of 5% for 5 years, how much interest do I receive?
What is the sum accrued, S, on an investment of P at an interest rate of r (expressed as a decimal) when interest is compounded annually for n years?
If I invest £1000 at a compound interest rate of 5% for 5 years, what is the sum accrued at the end of year 5? (To the nearest pound.)
Interest on a savings account is payable monthly. The nominal rate is 5%. What is the effective rate of interest?
A sum of £250 is invested at a nominal rate of 8% over 6 years. Calculate the sum which will accrue if interest is compounded quarterly?
Find the present value of £50,000 in 10 years’ time if the discount rate is 8% payable quarterly?
A property developer buys a property for £40,000 now. She intends to spend £20,000 at the end of year 1, on work but hopes to sell at the end of year 2 for £70,000. The internal rate of return on this projects is
How much can I borrow to buy a house on a 25-year mortgage if I don’t want my end-of-month payments at a nominal rate of interest of 9% per annum to exceed £300?
I borrow £5,000 which must be repaid by 24 monthly instalments starting at the end of this month at a rate of interest of 1.2% a month. How much must each instalment be?
