# Financial Math help

• Jul 5th 2009, 09:51 AM
mehrunesdagon
Financial Math help
I am taking some online classes and I need help with understanding these questions. Please give me the formula for solving these problems and if possible the answer so that I can study for my exam. I can't find any help in the book I was given.

You have averaged \$57,500.00 for the last five years of work. Your company has agreed to pay you 80 % of the average as your pension. Social security has notified you that you will receive \$2100.00a month. What is yourtotal monthly pension?

Interest rate is 9 % and doubling time is 8 years. If you invest \$5,000.00, what will it grow to in 24 years?

Interest rate is 7% and doubling time is 10.2 years. You have invested \$5,000.00. In how many years will your money equal \$40,000.00?
• Jul 5th 2009, 10:26 AM
CaptainBlack
Quote:

Originally Posted by mehrunesdagon
I am taking some online classes and I need help with understanding these questions. Please give me the formula for solving these problems and if possible the answer so that I can study for my exam. I can't find any help in the book I was given.

You have averaged \$57,500.00 for the last five years of work. Your company has agreed to pay you 80 % of the average as your pension. Social security has notified you that you will receive \$2100.00a month. What is yourtotal monthly pension?

What is 80% of \$57500, that is what your company will pay you per year, divide by 12 to get the monthly payment and then add the \$2100 from social security.

CB
• Jul 5th 2009, 10:29 AM
CaptainBlack
Quote:

Originally Posted by mehrunesdagon
Interest rate is 9 % and doubling time is 8 years. If you invest \$5,000.00, what will it grow to in 24 years?

The number of times 8 years goes into 24 years is the number of doublings you will see, now double \$5000 that number of times (after one doubling you will have \$10000 after two you will have \$20000, ...

Quote:

Interest rate is 7% and doubling time is 10.2 years. You have invested \$5,000.00. In how many years will your money equal \$40,000.00?
How many doublings are required to get from \$5000 to \$40000, ..

CB