- June 11, 2020 at 12:24 pm
I need some help in solving these four questions:
1.) A $10,000 certificate of deposit earns simple interest of 9 percent per year. Calculate the total earned money over the 6 year period?
2.)A sum of $22,000 is invested in a savings account which pays interest at the rate of 7.5 percent per year compounded quarterly. If the amount is kept on deposit for 12 years, what will the compound amount equal? How much interest will be earned during the 12 Years.
3.) A Company wants to deposit $1,500,000 per year in an investment which earns interest of 12 percent per year. Assume the first deposit is made at the end of the current year and additional deposits at the end of each following year.
a) To what sum will the investment grow at the time of the 12th deposit?
b) How much interest will be earned.
4.) A person wants to generate eight installments of $2,000 in the following four years. How much money should be invested, if the interest rate is 13 percent per year.June 11, 2020 at 12:58 pm
The topic of “interest” is covered in chapter 24 of the MA notes https://opentuition.com/acca/ma/ and you can access the corresponding lecture here https://opentuition.com/acca/ma/acca-management-accounting-ma-lectures/
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