You placed $1,101 in a savings account today that earns an annual interest rate of 3 percent compounded annually. How much you will have in this account at the end of 20 years? Assume that all interest received at the end of the year is reinvested the next year.
Big Brothers, Inc. borrows $121,550 from the bank at 5.52 percent per year, compounded annually, to purchase new machinery. This loan is to be repaid in equal annual installments at the end of each year over the next 4 years. How much will each annual payment be?