Interactive practice questions
Othman wants to start a scholarship where the top student each year receives a $\$4000$$4000 prize. If the interest on the initial investment averages $4%$4% per annum, compounded annually, how much should his initial investment be?
Anousheh wants to make an ongoing donation of $\$4300$$4300 to World Vision each year. If the interest on the initial investment averages $2.15%$2.15% per annum, compounded annually, how much should his initial investment be?
Asghar invests his superannuation payout of $\$220000$$220000 in a perpetuity that pays $6%$6% per annum, compounding annually. What is the size of the annual payment he will receive?
Samih has just won a $\$5000000$$5000000 jackpot and decides to invest it in a perpetuity that pays $3%$3% per annum, compounding monthly. What is the size of the monthly payment he will receive?