Here are some simple financial questions (answers may be approximate)
1. How long will it take to double your money at 14.4% interest compounded per year?
2. At what interest rate, compounded per year, will it take to double an initial investment of $1,000.00 per year in 5 years?
3. What sum must we initially deposit in order to accumulate the sum of $3,000 in 10 years at an annual compounded rate of 8.00%?
Answers to the last quiz follow:
Bob is 7 years old and Ray is 11 years old. The technique to solve this problem reuires some simple algebraic substitution and a knowledge of simultaneous equations. Hint: Ray's age is actually Bob's age + 4. This is really your easiest starting point.