Explore BrainMass

Sample Compounding Interest Questions

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Find the amount that should be set aside today to yield the desired future amount. Future amount needed, $7000, interest rate, 12%, compounding., Semiannually, investment time, two years. (see attached chart)

Dewey Sykes plans to open a business and four years when he retires. How much must he invest today to have $10000 when he retires if the bank pays 2% annually, compounded quarterly? (see attached chart)

© BrainMass Inc. brainmass.com December 20, 2018, 12:14 pm ad1c9bdddf


Solution Preview

Future amount = $7000
Interest rate = 12% compounded semiannually
Investment period = 2 years

Rate per period = 12%/2 = ...

Solution Summary

A guide for compounding interest problems