Financial Math

Version 12, changed by LFS. 12/01/2006.   Show version history

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Financial Math Help Forum - Ask or answer financial math questions.

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Mathcasts for financial math:

Simple Interest Problems (8 movies)

1. Calculate the simple interest earned in 1 year on a deposit of $1,000 if the interest rate is 7%.  -- Mathcast
2. Calculate the simple interest due on a 2-month loan of $2,000 if the interest rate is 5%  -- Mathcast
3. The ordinary method for converting time from days to years is to use an average of ____ days in a month and 12 months in a year. --  Mathcast 
4. The exact method for converting time from days to years is to use ____ days in a year. --  Mathcast
   
5. Calculate the simple interest due on a 60-day loan of $9,000 if the annual interest rate is 7%. --  Mathcast
   
6. The simple interest charged on a 5-month loan of $2,000 is $58.33.  Find the simple interest rate. --  Mathcast
   
7. Calculate the maturity value of a simple interest, 9-month loan of $2,000 if the interest rate is 8%.  --  Mathcast 
8. Calculate the maturity value using A = P(1 + rt) for a simple interest 9-month loan of $4,000.  The interest rate is 6.75%. --  Mathcast
   

Compound Interest Problems (5 movies)

1. You deposit $2,500 in an account earning 9% interest compounded semiannually (i.e, twice a year).  How much do you have in the account at the end of 1 year?  -- Mathcast
   
2. You deposit $1,000 in an account earning 8% interest compounded semiannually (i.e, twice a year).  How much do you have in the account at the end of 1 year?  -- Mathcast
3. Calculate the compound amount when $500 is deposited in an account earning 8% interest, compounded semiannually, for 7 years.  -- Mathcast
4. Calculate the compound amount when $1,000 is deposited in an account earning 5% interest, compounded daily, for 3 years.  -- Mathcast
5. How much money should be invested in an account that earns 8% interest, compounded quarterly, in order to have $14,000 in 8 years?  -- Mathcast