1. Ibiza corporation has been investing $20000 for the last four years in an investment scheme that is maturing at the end of the current year. It will be receiving $120,000 at the time of maturity. The $120,000 received at maturity is referred to as _.
2. Your friend loans you $10,000 for 10 years at 4% interest. You agree to pay $2,000 at the end of 3rd year, $3,000 at the end of 5th year, $6,000 at the end of 7th year and $2,000 at the end of 10th year. Was it a good deal for your friend who loaned you the money?
3. What is the effective annual rate if the APR is 5.25 percent, compounded semiannually.