Homework

Assignment: Compound Interest

Worksheet
 1. RM750 at 6.5% for 5 years
compounded annually
2. RM25,000 at 8% for 3 years
compounded annually
Try these:
3. RM680 at 5.5% for 1.5 years
compounded monthly
4. RM1500 at 4.5% for 2 years
compounded monthly
ANSWER
QUESTION 1
• Problem: • Answer:

nt
RM750 at 6.5% for 5 years compounded  r
annually MVA = P 1 + 
 n
15
 .065 
A = 7501 + .
MV 
 1 
A = 750(1.065)
5
MV

A = 1027.56
MV
QUESTION 2
• Problem: • Answer:

nt
• RM25,000 at 8% for 3 years compounded  r
annually A=
MV P 1 + 
 n
13
MVA =  .08 
250001 + . 
 1 
A= 25000(1.08)
3
MV

A = 31492.80
MV
QUESTION 3
• Problem: • Answer:

nt
1. RM680 at 5.5% for 1.5 years compounded
 r
monthly MVA = P1 + 
 n
12 1.5
 .055 
MVA = 6801 + 
 12 
MVA = 738.34
QUESTION 4
• Problem: • Answer:
nt
 r
• RM1500 at 4.5% for 2 years compounded A = P 1 + 
monthly MV  n
12 2
 .045 
A = 15001 + 
MV  12 
A = 1640.99
MV