Professional Documents
Culture Documents
Lec2-Extra Exercises On Interest
Lec2-Extra Exercises On Interest
Exercise
Determine the amount of deposit made three years ago ($X).
Solution
F-3= 200(F/P,6%,1) + X
= 200(1.06) +X
= 212+X
F-3 becomes p-3
F= P (F/P ,I , n)
F-2= (212+X)(F/P,8%,1)+0
= (212+X)(1.08)
= 228.96 +1.08X
Solution
F-2= 228.96 +1.08X
1.39X +639.8=1000
X=259
Exercise
Principle portion vs Interest portion
Based on the following information, fill the table and answer the following question:
• Loan principal =$15,000
• Interest rate =10% per year
• Duration of loan = 3 years
What percentage of the principle portion was paid by the end of year three?
3 ???
Exercise
Principle portion vs Interest portion
1 6,032
2 6,032
3 6,032
Exercise
Principle portion vs Interest portion
0 15000