Problem 1: Ryan has just deposited $10,000 in a bank account. The account pays 12% interest, compounded quarterly. How much will Ryan have in the account at the end of seven years?
Problem 2: Taraz Aina is obligated to make the following payments to a loan company: Right Now $7,500, At the end of one year $15,000, At the end of two years $22,500, At the end of three years $75,000.
The interest rate on the loan is 12% compounded annually, and there is no penalty for early payment. How much must Taraz Aina pay right now in order to completely satisfy her obligation under this loan? Note: The amount she must pay right now includes the $7,500 that is due right now.
Problem 3: On April 1, Joseph Han purchased a car with a cash price of $50,000.He paid 25% ($12,500) down and agreed to pay the remainder in monthly payments over ten years. The first payment on this $37,500 loan will be on May 1. The interest rate on the loan is 9% compounded monthly. What is the amount of each monthly payment?