Exam Fm 2 Interest Theory Formulas

A Basic Course in the Theory of Interest and Derivatives ...

12 THE BASICS OF INTEREST THEORY Practice Problems Problem 1.1 You invest $3,200 in a savings account on January 1, 2004. On December 31, 2004, the account has accumulated to $3,294.08. What is the annual interest rate? Problem 1.2 You borrow $12,000 from a bank. The loan is to be repaid in full in one year’s time with a payment due of $12,780.

  Interest, Theory, Interest theory