1. Explain the concept of interest and compare it to rate of interest.
2. When using a financial calculator, n stands for the ____.
number of periods
present value amount
interest rate per period
future value amount
3. Cosmos Touring wishes to replace its luxury bus in 10 years by accumulating funds in a special account. The new bus is expected to cost $180,000. How much must Cosmos put into the fund in equal, end-of-year amounts if earnings are expected to be 8% for the first 4 years and 10% thereafter?
$14,727
$11,465
$12,107
$9,901