1.A sum of $8,000 is invested in a savings account which pays interest at a rate of 9 percent per year compounded annually. If the amount is kept on deposit for 6 years, what will the compound amount equal? How much interest will be earned during the 6 years?
2.A university endowment fund has invested $4 million in United States government certificates of deposit. Interest of 8 percent per year, compounded semiannually, will be earned for 10 years. To what amount will the investment grow during this period? How much interest will be earned?
3. A company invests $500,000 in a money market fund which is expected to yield interest at a rate of 10 percent per year compounded quarterly. If the interest rate projections are valid, to what amount should the $500,000 grow over the next 10 years? How much interest will be earned during this period?
4.An individual invests $25,000 in a money market fund which is expected to yield interest at a rate of 12 percent per year compounded quarterly. If the interest remains stable, to what amount should the $25,000 grow over the next 5 years? How much interest will be earned during this period?