Homework Help is Here – Start Your Trial Now!
Math
Advanced Math
1. Suppose £5000 is invested for five years. Calculate the amount accumulated at the end of five years if interest is compounded annually at a nominal rate of (a) 5%, (b) 7%, (c) 10 %.

1. Suppose £5000 is invested for five years. Calculate the amount accumulated at the end of five years if interest is compounded annually at a nominal rate of (a) 5%, (b) 7%, (c) 10 %.

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
See similar textbooks
icon
Related questions
Question
Simple and Compound Interest 1. Suppose £5000 is invested for five years. Calculate the amount accumulated at the end of five years if interest is compounded annually at a nominal rate of (a) 5%, (b) 7%, (c) 10%. 2. A savings account of £10000 earns simple interest at 5% per annum. Calculate the value of the account (future value) after six years. 3. £2500 is invested at a nominal rate of interest of 5% compounded annually. Calculate the amount accumulated at the end of (a) 1 year, (b) 4.5 years, (c) 10 years, (d) 20 years. 4. Calculate the present value of £6000 that is expected to be received in three years' time with simple interest of 7.5% per annum. 5. How much is a sum of £3500 worth at the end of five years if deposited at (a) 11% simple interest and (b) 11% compound interest, each calculated annually? 6. Calculate the present value of £6500 to be received in two years' time when the interest rate is 8% per annum, compounded annually. 7. Calculate the present value of £10000 due in five years if interest is compounded annually at 4.5%.
Transcribed Image Text:Simple and Compound Interest 1. Suppose £5000 is invested for five years. Calculate the amount accumulated at the end of five years if interest is compounded annually at a nominal rate of (a) 5%, (b) 7%, (c) 10%. 2. A savings account of £10000 earns simple interest at 5% per annum. Calculate the value of the account (future value) after six years. 3. £2500 is invested at a nominal rate of interest of 5% compounded annually. Calculate the amount accumulated at the end of (a) 1 year, (b) 4.5 years, (c) 10 years, (d) 20 years. 4. Calculate the present value of £6000 that is expected to be received in three years' time with simple interest of 7.5% per annum. 5. How much is a sum of £3500 worth at the end of five years if deposited at (a) 11% simple interest and (b) 11% compound interest, each calculated annually? 6. Calculate the present value of £6500 to be received in two years' time when the interest rate is 8% per annum, compounded annually. 7. Calculate the present value of £10000 due in five years if interest is compounded annually at 4.5%.
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
Basic Technical Mathematics
Basic Technical Mathematics
Advanced Math
ISBN:
9780134437705
Author:
Washington
Publisher:
PEARSON
Topology
Topology
Advanced Math
ISBN:
9780134689517
Author:
Munkres, James R.
Publisher:
Pearson,
SEE MORE TEXTBOOKS