Each questions carries 20% but scores are lost for incorrect attempts.
Helpful Hint:
Find Interest. Add to Principal to get the value which becomes the new principal for the next year or you can use the formula:
FV = PV × (1+r)n
where FV = Future Value, PV = Present Value, r = annual interest rate, n = number of periods
A sum of €5000 is invested in an eight year government bond with an annual equivalent rate(AER) of 6%. Find the value of the investment when it matures in eight years' time.
€7969.24
€6959.24
€2969.24
None of the above
A certain deposit account will earn 3% interest in the first year and 6% interest in the second year. The interest is added to the account at the end of each year. If a person invests €20,000 in this account, how much will they have in the account at the end of two years?
€1,836
€21,836
€22,400
€21,200
A person invests €8,000 in a 5 year savings bond with an AER (annual equivalent rate) of 6%. Find the value of the investment to the nearest euro when it matures in 5 years.
€10,400
€10, 706
€10,000
None of the above
A deposit account offers 5% interest in the first year and 6% interest in the second year. The interest is added to the account at the end of each year. If a person invests €10,000 in this account, how much will they have in the account at the end of two years?
€10,500
€11,000
€10,800
€11,130
A sum of €9,000 is invested in an account for 10 years where it earns 3% interest in the first year, 4% interest in the second year and 5% interest in the remaining years. Find the value of the investment at the end of the 10 years.