FINANCE QUESTIONS

Finance Questions



Finance Questions

1. How much would you have to invest now at 8% interest to have $25,000 at the end of 7 years?Compound Amount= Principal Investment (1+i) ^n

25000 = Principal Investment (1.08) ^7

25000 = Principal Investment (1.7138)

Principal Investment = 25000/1.7138

Principal Investment = $14587

2. With an 8% interest rate, how much would you have to invest at the end of each of the next 7 years to have $25,000 right after you make the last payment?

N = (P/r)( (1 + r)n - 1)

In this case, Total = $25000; Amount = ?, Rate (r) = 8%.

25000= (P/0.8) ((1.08)07 - ...