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Finance, Investment and Banking (IC50006)

Practice Exercise

1 - if, at the end of two years  savings account has a balance of £1172.60, and the interest rate is compounded monthly at 3.2%, then what is the original amount deposited two years ago?

2 - An initial deposit of £5000 is made into a savings account that compounds 7.1% interest annually. How much is in the account at the end of five years?

3 - After 80 years of 5.8% interest compounded monthly, an account has £102,393.44. What was the original deposit amount?

4 - you win the lottery and get £1000,000. You decide that you want to invest all of the money in a savings account. Your bank has two different plans, (i) the bank gives you a 6% interest rate and compounds the interest each month, (ii) the bank gives you a 12% interest rate and compounds the interest every 2 months. Calculate the future value for each option.

 5 -  £250 is left in a savings account at 4% and the interest is compounded continuously. If the balance is now £330.78, then how many years was the money been in the account?

6 - £600 is deposited in a bank paying 19.25% compound interest per annum. What is the balance after 12 years?

7 -  £4700 is deposited in a bank paying 15.75% compound interest per annum. what is the balance after 7 years?

8 - You take out a loan for $446 at an interest rate of 9% compounded monthly for six years. What is the total amount that you will have at the end of the six years?

9 - How much interest is earned on $920 at 6% compounded monthly for nine years?

10 - What will the final balance be for $198 invested at 9% compounded weekly for six years?

11 - If you borrow $711 at 8% compounded daily for two years, how much will you pay back by the end of the term?