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Financial Math Assignment Guide

This document provides a bank of answers to accompany a math assignment involving calculating interest on various investments over different periods of time. The assignment includes 9 questions asking students to calculate future values, interest rates, total amounts invested, lengths of loans, and amounts needed to be invested. Students are asked to show their work and attach another assignment to complete the package.

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Nadia Shams
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195 views2 pages

Financial Math Assignment Guide

This document provides a bank of answers to accompany a math assignment involving calculating interest on various investments over different periods of time. The assignment includes 9 questions asking students to calculate future values, interest rates, total amounts invested, lengths of loans, and amounts needed to be invested. Students are asked to show their work and attach another assignment to complete the package.

Uploaded by

Nadia Shams
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

MCR 3U UNIT 8 ASSIGNMENT

Please do all your work on lined paper and staple this page to the front. The answers are provided in a
bank at the bottom, but please show all your work for full marks. Make sure you attach your CLA prep
paragraph to this assignment.

1) In January, 2005, Kris invested $4100 at 3.5%/a simple interest. In December, 2007, she
withdrew $2000 from her account and invested it in a second account that earned 4.0%/a simple
interest. How much money will Kris have altogether in both accounts at the end of 2010?

2) The future value of an account is $4849.14 in 5 years. If the rate of compound interest is 8.4%/a
compounded quarterly, what is the principal investment?

3) Order the investment products from most to least interest earned.


Product Rate of Compound Compounding Time Future Value
Interest per Year Period
1 3.8% Annually 4.75 years $20 000
2 3.5% semi-annually 5 years $20 000
3 3.6% Quarterly 4.5 years $20 000

4) Enzo puts $2500 down on a new car and finances the rest at an interest rate of 7.8% compounded
monthly. Five years later, he paid $28 469.78 for the principal and interest. How much did the car
originally cost?

5) Gayle has money invested in an account. After 6 years, compounded monthly, she will have
$6044.34 in her account, $1344.34 of which is earned interest. What is the interest rate of Gayle’s
account? Round your answer to two decimal places.

6) Chandra invests $75 every month at 4.8%/a compounded monthly for 8 years. What is the total
amount of Chandra’s investments after 8 years?

7) The purchase price of Tanya’s new car was $23 200. She put down $3000 and financed the rest
at 8.4%/a compounded monthly. Her monthly payments are $300. How long will it take her to pay off the
loan?

8) Joe borrowed $330 000 from the bank to purchase a house. If the bank charges 6.12%/a
compounded monthly, he will take 30 years to pay off the loan. How much interest will he have paid over
the term of the loan?

9) Stefania’s parents calculate that they will need $7500 every 3 months for 4 years to pay for
Stefania’s college. They have 18 years until she is college age. How much should they invest every 3
months at 6.4%/a compounded quarterly for the next 18 years if they plan to withdraw $7500 per quarter
for the 4 years after that?

Test Bank:

$3200 $787.60 $21 800.00 Product 1, Product 2, Product 3


4.20% 7 years 8 months $391 457.24 $8756.65 $5036.20

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