Chapter 4.5® - Examples of Interest Rate Calculations & Practice Questions #1 - #7
A person opens a bank account with a deposit of $150. At the end of 3 years, there is $179.34 in the account. What nominal interest rate compounded quarterly was earned on the investment?
A deposit of $1500 earned $672.45 interest over 7 and ½ years. What nominal interest rate compounded semi-annually was paid on the deposit?
A principal of $7100 has maturity value of $13,966.70 in 10 years. If the interest rate is compounded annually, what is the nominal rate?
A present value of $1301.69 has a future value of $2569.26
in 7 years and 7 months. What is the nominal rate compounded monthly?
At what nominal rate compounded quarterly will money double in 7 and ½ years?
At what nominal rate compounded monthly will money double in 6 years?
At what nominal rate compounded semi-annually will money triple in 9 and ½ years?