In: Finance
1. If you salary is $1500 and you save $500 every month
You are saving 1/3rd that is 33.33333% [ 500/ 1500 * 100]
FOrmula for saving rate = [Savings / Total Salary] * 100
You can write it as %
2. Given Fv = 15000, Period 10 years, rate 8% Calculate PV
PV = FV / (1+r)n
= 15000 / (1.08)10
= 15000 / 2.15892500
= 6947.90 approx
$6947.90 approx needed to deposit today for 10 year @ 8% to get $15000.
3. Calculate rate of interest, PV= 500, FV = 1948, No fo years =12
PV = FV / (1+r)n
500 = 1948 / (1+r)12
(1+r)12 = 1948 / 500
(1+r)12 = 3.896
1+r = 1.120000
r= 1.12 - 1
r =12%
Annual Interest rate = 12%