Scribd
Upload
13 views2 pages

FORMULAS

The document contains various financial formulas related to interest calculations, loan repayments, and investment returns. It also includes specific questions with their respective calculations and answers, such as interest amounts, loan periods, and future values. Key examples include calculating interest on loans, determining future values of investments, and rescheduling loan payments.

Uploaded by

jtoure426
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
13 views2 pages

FORMULAS

The document contains various financial formulas related to interest calculations, loan repayments, and investment returns. It also includes specific questions with their respective calculations and answers, such as interest amounts, loan periods, and future values. Key examples include calculating interest on loans, determining future values of investments, and rescheduling loan payments.

Uploaded by

jtoure426
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

FORMULAS

I=P.r.t S=P+I S = P (1 + r . t) P = S / 1+
r.t

P = x / 1 + r . t1 i = I/Y / C/Y N=C/Y.t I = FV -PV

N=P/Y.t I = FV – (N . PMT) I = FV – (N . PMT) – PV)

Total Amount Paid to Repay Loan = N. PMT I = (N . PMT) – PV

Total Amount Deposited = N. PMT Purchase Price = Down Payment + PV

Contribution through payment = N . PMT

QUESTIONS

1. $8,120 at 6.5% p.a. for 3 months. Please calculate interest amount.


131.95 USD

2. Priya took a short-term loan of $14,000 at 8.5% p.a. What was the time period of the loan
(rounded up to the next day) if she was charged the interest amount of $1500?
461 DAYS

3. What was the annual rate of simple interest offered on a savings of $8500 if the amount of
interest earned in 6 months was $250? Round your answer to two decimal places if needed.
5.88%

4. You invest $3000 in a short-term deposit at 4.5% p.a. for 165 days. a) What will be the
future value of this investment? b) What will be the amount of interest earned?
a) 3061.03 USD
b) 61.03 USD

5. What amount of money will mature to $4195.25 in 110 days at 4.5% p.a. interest?
4139.12 USD

6. Aslan is required to repay a matured loan amount of $1915 in nine months. However, he
realizes that he can clear the loan four months earlier. How much will he have to pay to clear
the loan four months earlier if the interest charged is 5.2% p.a.?
1882.37 USD

7. Nancy realizes that she cannot repay a matured loan amount of $3400 that is due today and
decides to reschedule the payment. If the interest charged is 4.8% p.a., what equivalent
payment is required to repay this amount in 10 months?
3536 USD

8. An investment is earning interest at 7.23% compounded monthly for 8 years and 6 months.
a) What is the nominal interest rate per year (I/Y)? b) What is the number of compounding
periods (frequency) per year (C/Y)? c) What is the investment period in years (t)? d)
Calculate the periodic interest rate (i). e) Calculate the number of compounding periods in the
term (N). Round your answers to two decimal places if needed.

I/Y = 7.23%
C/Y = 12
t = 8.50 years
i = 0.6% per month
N = 102

You might also like