Name: Class: Date:

Chapter 02: Banking Services Part 2 Review

ALL THE EQUATIONS:

compound interest
: =P(1+
(future/single (
I Put
simple interest
=
:

continuous interest : B
= Pert
+

future/periodic
: B =
P((1 +
F(n -

1)
#
B
present/single
:
p =

(1 + F)nt

present/periodic :
p = B()
=

(1 + (n -

-
n+
m)
w()
systematic withdrawal
:
p= -

(1 +

* Test has 13 QS
- 2 TIF
↳ 4 MC

↳ 7 JA

Types of Compounding:
Yearly
:
1

monthly : 12

daily : 365

weekly : 52

remiannually : 2 :
logy
logpy x
=

quarterly : 4 logX
->
How to change to a log:
* to evaluate -> MATH- option A - plug in
draw an "e" or a "L"
(to solve (
=x > b y
=

loggy
"
b loggy
x
given
= :

given : =
y <

One-to-One and Power Properties:

>loga" =
bloga

·a logb
Name: Class: Date:

Chapter 02: Banking Services Part 2 Review

EXAMPLES:
o I open a savings account with a 4.33% interest rate, compounded monthly and deposit $325
each month into the account. How much will my account have after 15 years?

o I open a savings account with a 7.59% interest rate, compounded annually and deposit $2,350
each month into the account. How much will my account have after 30 years?

o I deposit $900 each quarter into my account which earns 2.75% interest compounded
quarterly. What is the balance after 23 years?
Name: Class: Date:

Chapter 02: Banking Services Part 2 Review

o I want to have $750,000 for retirement. How much do I need to deposit each month into my
account that pays 6.42% interest, compounded monthly to meet my goal in 50 years?

o My nephew is 8 years old and he wants to buy a golf cart to ride around his neighborhood when
he's 16. He wants to have $8,000 saved by that time so he opens an account with an interest
rate of 5.5% compounded weekly. How much does he need to put into the account each week to
reach his goal?

o My brother wants to have $1,000,000 for retirement in 20 years. He opens an account with a
7.9% interest rate that compounds weekly. How much does he need to deposit each week to
meet his goal?
Name: Class: Date:

Chapter 02: Banking Services Part 2 Review

o I want to have $12,000 for my master's in 5 years. What single deposit would I need to make to
have that amount when my account compounds my money daily at a rate of 3.4%?

o I want to save $130,000 for a down payment on a house. If I have $40,000 in an account that
pays 1.3% interest compounded daily, how long will it take for my money to grow to this amount?

o I deposit $12,000 into an account that continuously compounds at a rate of 5.678%. how long
will it take to grow to $15,000?
Name: Class: Date:

Chapter 02: Banking Services Part 2 Review

o I open a systematic savings account where I will deposit $800 a month compounded monthly at
a rate of 9.87%. How long will it take me to reach $600,000?

o I invest $50,000 into an account that compounds monthly at a rate of 3.17%. I withdraw $250
every month to pay off my 15-year loan. Will I have enough in the account to cover all my
payments.