Investing Answers

To save for a car when he turns 18, Pascale deposited $500 each year into a savings account with a 7.5% interest rate compounded annually.YearBeginning BalanceInterest EarnedEnding Balance1$500.00$37.50$537.502$1,037.50$77.81$1,115.313$1,615.31$121.15$1,736.464$2,236.46$167.73$2,404.195 Using the formula , what is the value of the account at the end of the fifth year?

Uta invests an amount into a compound interest investment account that pays 6% a year. After six years, she withdraws her total balance of $500. Using the formula , how much money did Uta initially invest?

Herky and Elaina want to compare their investment accounts to see how much they will have in the accounts after eight years. They substitute their values shown below into the compound interest formula.Compound Interest AccountsNamePrincipalInterest RateNumber of YearsCompoundedHerky$5005%8Once a yearElaina$4006%8Once a yearWhich pair of equations would correctly calculate their compound interests?

Using the rule of 72, , how long will it take for the principal to double with an annual compound interest rate of 6%?

Jon has $5,000 to invest in a savings account that has interest compounded annually. If he wants his money to double in eight years, what percent must the interest rate be on the account? [BLANK]

Jala put $600 in an interest bearing account with a annual compound interest rate of 5%. Jala determined that after seven years, she will have a total balance of $844.26. Using the rule of 72, how many more years will it be before Jala’s $600 doubles in value? Round to the nearest tenth.

Sylvia invested $500 in an account compounded annually with an interest rate of 8%. Manuel invested $600 in an account with a compound interest rate of 7.25%. Using the rule of 72, , who will double their money first?

Ted and Alan are in a race to double their money. Ted feels he will win if he puts his $4,000 into a savings account offering 4.5% interest compounded annually. Alan feels he will win because he intends to put his $1,000 into a savings account offering 6% interest compounded annually. Using the rule of 72, , who will win, and how many years will it take to double his money?

Uta invests $345 into a simple interest investment account that pays interest at a rate of 9% a year. After several years, she withdraws her balance of $531.30. Using the formula , how many years was her money invested?

Sharla invests $275 in a simple interest bearing account for 16 years. The annual interest rate is 8%. Using the simple interest formula, , how much interest will Sharla’s initial investment earn over the 16 year period?