4 Questions about Finance

Q1 How many years will the following take? You invested 1000 SAR to grow to 1718.19 SAR if
invested at 8 percent compounded annually.
Q2 Present value calculations. Suppose you decided to make a single investment of 2.500,000 SAR at
the time of your retirement in 35 years. a. You found a mutual fund that will earn 5 percent annually.
How much will you have to invest today? b How much would you have to invest today if your
investment earned a 14 percent annual return?
Q3 Calculate payment of 7,000 SAR made at the end of each year for 15 years, with an interest rate of
10%.
b. Calculate payment of 7,000 SAR made at the beginning of each year for 15 years, with an interest rate
of 10%.
Q4 Suppose you have to borrow 3,000 SAR at an interest rate of 8.5% (compounded quarterly) for a
period of 4 years. What will be the loan amount you need to pay at the end of 4 years?