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  • Exercises-Compound Interest

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    Yeong Zi Ying
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    The document contains 7 exercises involving compound interest calculations. The exercises ask the reader to calculate future values and interest rates for investments compounded monthly, daily, quarterly, semi-annually and annually over periods of 4-5 years with nominal interest rates ranging from 6-12%. The final exercise asks the reader to determine which loan repayment option would be best between options with interest rates of 8-8.3% compounded monthly, semi-annually or annually.

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    Exercises-compound interest

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    The document contains 7 exercises involving compound interest calculations. The exercises ask the reader to calculate future values and interest rates for investments compounded monthly, daily, quarterly, semi-annually and annually over periods of 4-5 years with nominal interest rates ranging from 6-12%. The final exercise asks the reader to determine which loan repayment option would be best between options with interest rates of 8-8.3% compounded monthly, semi-annually or annually.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Download as pdf or txt
    39 views1 page

    Exercises-Compound Interest

    Uploaded by

    Yeong Zi Ying
    The document contains 7 exercises involving compound interest calculations. The exercises ask the reader to calculate future values and interest rates for investments compounded monthly, daily, quarterly, semi-annually and annually over periods of 4-5 years with nominal interest rates ranging from 6-12%. The final exercise asks the reader to determine which loan repayment option would be best between options with interest rates of 8-8.3% compounded monthly, semi-annually or annually.

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    © All Rights Reserved
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    Exercises – Compound Interest

    1. If RM3500 is invested at 9% compounded monthly, what will the future value be in four
    years?
    2. How much should be invested in an account paying 9% interest compounded daily for it
    to accumulate to RM5,000 in five years?
    3. How much money must you invest in an account paying 6% interest compounded
    monthly if it pays RM 6140 in 4 years?
    4. If you had an initial sum of RM5000 and collected a final sum of RM8000 after 5 years,
    what was the nominal interest rate earned on the investment compounded quartely.
    5. Anna received a sum of RM50000 from her deceased father’s will. She wants to invest in
    an account that pays 7% interest per annum compounded semi annually. How much will
    she have in 5 years?
    6. Determine the effective annual interest rate if the nominal interest rate is 12%
    compounded quarterly.
    7. Determine which of the following would be the best option to repay a loan:
    a 8.1% per annum compounded annually
    b 8.3% per annum compounded semi-annually
    c 8% per annum compounded monthly

    1. RM5009.92
    2. RM3188.32

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