Using the appropriate interest table, provide the solution to each of the following four questions by computing the unknowns.
What is the amount of the payments that Morgan Winslow must make at the end of each of 9 years to accumulate a fund of $81,600 by the end of the 9th year, if the fund earns 9% interest, compounded annually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Payment at the end of each year $ =
John Hitchcock is 41 years old today and he wishes to accumulate $495,000 by his 65th birthday so he can retire to his summer place on Lake Hopatcong. He wishes to accumulate this amount by making equal deposits on his 41st through his 64th birthdays. What annual deposit must John make if the fund will earn 11% interest compounded annually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Annual deposit $ =
Julia Ross has $19,700 to invest today at 11% to pay a debt of $45,399. How many years will it take her to accumulate enough to liquidate the debt? (Round answer to 0 decimal places, e.g. 45.)
Years ?
Cindy Houston has a $30,200 debt that she wishes to repay 5 years from today; she has $17,922 that she intends to invest for the 5 years. What rate of interest will she need to earn annually in order to accumulate enough to pay the debt? (Round answer to 0 decimal places, e.g. 7%.)
Rate of interest %