Question: 1. How much would I have to deposit in an account today that pays 12% interest, compounded quarterly, so that I have a balance of $20,000 in the account at the end of 10 years?
2. Suppose I want to able to withdraw $5,000 at the end of five years and withdraw $6,000 at the end of six years, leaving a zero balance in the account after the last withdrawal If I can earn 5% on my balances, how much must I deposit today to satisfy my withdrawals needs?
3. Suppose you deposit $100,000 in an account today that pays 6% interest, compounded annually. How long does it take before die balance in your account is $500,000?