1. Find how long $200 should be left to accumulate at 8% effective in order that it will amount to four times the accumulated value of another 200 deposited at the same time at 6% effective.
2. You invest $4000 today and plan to invest another $2000 two years from today. You plan to withdraw $6000 in n years and another $6000 in n + 3 years, exactly liquidating your investment account at that time. If the effective rate of discount is equal to 4%. find n.
3. Jenna owns a 7% bond that has an 8.2% yield to maturity and 10 years to maturity. If the yield to maturity on the bond increases to 9.2%, how much will the bond change in value?
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