Solving Problems

involving Compound
Interest
Maturity(Future) Value and
Compound Interest.
F = P(1+r)t
where:
P = principal or present value
F = maturity(future) value at the end of the
term
r = interest rate
t = term/time in years
1. Find the maturity value
and the compound interest if
10,000 is compounded
annually at an interest rate
of 0.2% in 5 years.
2. Suppose your father
deposited in your bank account
8,000 at an annual ineterest
rate of 0.5% compounded
yearly. How much will you
have in your bank account
after 12 years?
3.Find the maturity value
and the compound interest if
50,000 is compounded
annually at an interest rate
of 5% in 8 years and six
months.
4.What is the present
value of 34,000 due is
6 years if money is
worth 9% compounded
annually?
5.How much money should
a student place in a time
deposit in a bank that pays
1.12% compounded
annually so that he will have
200,000 after 9 years?
Seatwork
Principal(P compound Maturity
Rate(r) Time(t)
) interest(I) value(F)

6,000 8% 12 a b
6yrs &
12,000 5.5% c d
9 mos.
e 1% 6 f 25,000