1.
The simple interest per year is: $6,000 × .07 = $420
So, after 10 years, you will have: $420 × 10 = $4,200 in interest.
The total balance will be $6,000 + 4,200 = $10,200
With compound interest, we use the future value formula:
FV = PV(1 +
r
)
t
= $6,000(1.07)
10
= $11,802.91
The difference is: $11,802.91 – 10,200 = $1,602.91
Enter
10
7%
±
$6,000
N
I/Y
PV
PMT
FV
Solve for
$11,802.91
2.
FV = PV(1 +
r
)
t
FV = $3,150(1.18)
3
= $
5,175.55
FV = $7,810(1.06)
10
= $
13,986.52
FV = $89,305(1.12)
17
= $613,171.78
FV = $227,382(1.05)
22
= $665,151.63
Enter
3
18%
±
$3,150
N
I/Y
PV
PMT
FV
Solve for
$5,175.55
Enter
10
6%
±
$7,810
N
I/Y
PV
PMT
FV
Solve for
$13,986.52
Enter
17
12%
±
$89,305
N
I/Y
PV
PMT
FV
Solve for
$613,171.78
Enter
22
5%
±
$227,382
N
I/Y
PV
PMT
FV
Solve for
$665,151.63
3.
PV = FV / (1 +
r)
t
PV = $15,451 / (1.04)
9
= $10,855.67
PV = $51,557 / (1.12)
4
= $32,765.41
PV = $886,073 / (1.22)
16
= $36,788.51
PV = $550,164 / (1.20)
21
= $11,958.76
Enter
9
4%