Finance

Question 1

Calculate Interest -

Answer 1

I = P x r/100

Question 2

Calculate Interest over Any Time Period -

Answer 2

I = P(1 + r/100)t - P

Question 3

Effective Interest Rate -

Answer 3

R = ((1 + r/100)t -1) x 100

Question 4

Accumulated Value -

Answer 4

A = P(1 + r/100)t

Question 5

Variable Interest Rates -

Answer 5

Ayear1 = P(1+ r/100)
Ayear2 = P2(1 + r2/100)
Ayear3 = P3(1 + r3/100)

Question 6

Present Value -

Answer 6

P3 = P/r
P2 = P2/r2
P = P3/r3

Question 7

Payments with Differing Degrees of Regularity -

Answer 7

= P(1 + r/100)t + P(1 + r/100)t etc etc

Question 8

Loan Schedule (by hand) -

Answer 8

Int. of CR(£) = Loan Outstanding x effective interest rate %
Capt. Cont. (£) = Repayment - Int. of CR
Loan Outstanding2 = Loan Outstanding - Capt. Cont.

Question 9

National Insurance -