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Access custom-built, exam-style problems for financial mathematics. Each problem has a full solution and mark-scheme, as well as AI grading and support.
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Sam wants to retire at age 50. He plans to set up an annuity fund that will provide him with a monthly allowance of $3500 for 30 years, starting when he retires.
His financial advisor tells him he can expect to earn interest at an annual rate of 7%, compounded monthly.
Calculate how much Sam must have saved in his annuity fund by age 50, in order to meet his retirement goal.
Sam is currently 27 and has not started saving yet. He plans to save some part of his salary each month to contribute to his annuity fund.
Find, to the nearest hundred, the amount Sam must save, each month, to meet his retirement goal.
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Quinn takes out a loan of $350,000 to purchase a small condo in Boston. The bank agrees to lend to him at an 8% annual interest rate, compounded monthly.
To repay the loan, Quinn makes monthly payments of $P over 15 years.
Determine the value of P to the nearest dollar.
Calculate the total payments Quinn makes to the bank.
Hence find the total interest paid by Quinn.
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Jacob is choosing between two ways to save up for a vacation planned 7 years from now. He is considering two different strategies to save a total of €Q for his vacation.
Option A: Deposit €4000 today in an account that earns 4.2% annual interest, compounded monthly.
Option B: Deposit €P at the end of each month until the vacation in an account that earns 5% annual interest, compounded monthly.
Calculate, to the nearest euro, the value of €Q.
Find the value of P, giving your answer to two decimal places.
Determine which option yields greater total interest, and state by how much.
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On January 1st, 2017, Teddy makes an investment of $100,000 into a savings account that produces a 6% nominal annual return.
Ten years later, the real value of Teddy's bank balance is $125,000.
Determine the real annual interest rate to two decimal places.
Find i%, the average inflation rate (to two decimal places) Teddy experienced over the course of the decade.
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Laura invests $6000 in a savings account that pays an annual interest rate of 5.5%. Interest is compounded monthly.
Give an expression for the value of Laura's savings after n years.
Calculate the amount of interest she will earn over 5 years, giving your answer to the nearest dollar.
Laura wants to use her savings to put down a $10000 deposit on a car.
Find the number of years Laura will have to wait.
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