Personal Finance Math Problems and Interest Calculations
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Personal Finance Math and Interest Calculations
Interest and Yield Calculations
- Simple Interest: Katie invests $2,300 in an account that pays 7% simple interest annually. Find the future value of the account after 9 years. Round your answer to the nearest cent.
- Monthly Compounding: Suppose you invest $1,900 at a fixed rate of 5% per year, compounded monthly. Find the future value of the account after 6 years. Round your answer to the nearest cent.
- Continuous Compounding: Suppose you instead invest your $1,900 in an account that earns 6% interest compounded continuously. What is the total amount of your investment after 7 years? Round your answer to the nearest cent.
- Effective Annual Yield: Find the effective annual yield to the nearest hundredth