After placing $13,000 in a savings account paying annual compound interest of 4%, Leona will accumulate what amount if she leaves the money in the bank for 3 years?
What is the future value of $500 a year for nine years compounded annually at 11%? How much will the future value of $900 for nine years compounded annually at 11% be?
To buy a new house you must borrow $150,000. To do this, you take out a $150,000, 20-year, 9% mortgage. Your mortgage payments, which are made at the end of each year (one payment each year), include both principle and 9% interest on the declining balance.
How large will your annual payments be? What amount will your annual payment be? How much do you have to deposit today so that beginning 11 years from now, you can withdraw $9,000 a year for the next eight years (periods 11 through 18) plus an additional amount of $18,000 in the last year (period 18)?
Assume an interest rate of 8%. What is the amount of money you would need to deposit today?