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Investments compounded annually

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a. What amount of money should you put in the bank today so that you will have $12,000 at the end of six years if you can earn 8% compounded annually?

b. How much money should you save annually so that you will have $1500 after eight years if you can earn 9% compounded annually?

c. What interest rate would allow you to accumulate $10,000 in 8 years if you saved $60 per month and earned interest compounded monthly?

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Solution Summary

This solution provides calculations regarding investments that are compounded annually.

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Radhika Lakshmi, MPhil
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  • MPhil, Madurai Kamaraj University
  • MCom, Annamalai University
  • IATA, International Air Transport Association
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