You borrow 95000 and agree to pay the interest and, Financial Management

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You borrow 95000 and agree to pay the interest and

1. A gallon of milk costs $3.59 today. How much will it cost you to buy a gallon of milk for your grandchildren in 35 years if inflation averages 5% per year and milk prices increase along with the overall rate of inflation?

2. You borrow $95,000 and agree to pay the interest and principal in monthly installments over the next 12 years. The annual interest rate of 12%. What are the monthly payments required to amortize this loan?

3. Compound interest can best be described as:

a. interest earned on the original principal

b. the discount rate

c. interest earned on interest only

d. interest earned on interest and interest earned on the original principal

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Financial Management: You borrow 95000 and agree to pay the interest and

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Financial Management: You borrow 95000 and agree to pay the interest and

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