Thread: 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?

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

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, ...

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