Interactive practice questions
Naushad wants to start a scholarship where the top student each year receives a $\$2000$$2000 prize. If the interest on the initial investment averages $5%$5% per annum, compounded annually, how much should his initial investment be?
Farzad wants to make an ongoing donation of $\$1800$$1800 to World Vision each year. If the interest on the initial investment averages $3.75%$3.75% per annum, compounded annually, how much should his initial investment be?
Anoush invests his superannuation payout of $\$810000$$810000 in a perpetuity that pays $4%$4% per annum, compounding annually. What is the size of the annual payment he will receive?
Samih has just won a $\$7000000$$7000000 jackpot and decides to invest it in a perpetuity that pays $6%$6% per annum, compounding monthly. What is the size of the monthly payment he will receive?