Exercises for Question Type 3: Finding initial value of investment given final value of returns after n years in the bank for different compounding values - IB | RevisionDojo

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Question Type 3: Finding initial value of investment given final value of returns after n years in the bank for different compounding values

Question Type 3: Finding initial value of investment given final value of returns after n years in the bank for different compounding values Exercises

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Question 1

An investment compounds monthly at $6\%$ nominal. Find $P$ if the future value is $10000$ after $3$ years.

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Written by official IB examiners

Question 1

An investment compounds monthly at $6\%$ nominal. Find $P$ if the future value is $10000$ after $3$ years.

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Question 2

What deposit $P$ will grow to $7500$ in $7$ years at a nominal rate of $4.5\%$ compounded monthly?

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Question 3

Determine the principal that accumulates to $12\,000$ in $10$ years at $5.5\%$ nominal interest compounded monthly.

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Question 4

Find the value of $P$ that grows to $12\,000$ in $10$ years at a nominal annual interest rate of $5.5\%$ compounded semi-annually.

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Question 5

An investor wants $7500$ dollars after $7$ years. What principal $P$ is needed if the nominal annual rate is $4.5\%$ compounded annually?

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Question 6

Find the principal $P$ which yields $5000$ after $5$ years at $5\%$ nominal interest, compounded monthly.

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Question 7

An account compounds semiannually at $6\%$ nominal annual interest. What principal yields $10000$ in $3$ years?

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Question 8

Determine the principal $P$ required to reach $10\,000$ in $3$ years at a nominal annual rate of $6\,\%$ compounded annually.

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Question 9

Find the initial amount $P$ that grows to $12\,000$ in $10$ years at a nominal rate of $5.5\%$ compounded annually.

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Question 10

Calculate the initial deposit $P$ needed to have $7500$ in $7$ years at a nominal annual interest rate of $4.5\%$ compounded semi-annually.

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Question 11

Calculate the principal $P$ that accumulates to $5000$ in $5$ years at $5\%$ nominal interest compounded semiannually.

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Question 12

Find the initial investment $P$ that will accumulate to a future value of $5000$ in $5$ years at a nominal annual interest rate of $5\%$ compounded once per year.

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