Your aunt is planning to invest in a bank CD that will pay 6.50 percent interest semi-annually. If she has $15,000 to invest, how much will she have at the end of four years?
Roy Gross is considering an investment that pays 8.20 percent. How much will he have to invest today so that the investment will be worth $29,000 in six years? (If you solve this problem with algebra round intermediate calculations to 4 decimal places, in all cases round your final answer to the nearest penny.)
You invest $290 into a mutual fund today that pays 4.5 percent interest annually. How long will it take to double your money? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to two decimal places, e.g. 5.45)
Jeremy Fenloch borrowed some money from his friend and promised to repay him the amounts of $1,235, $1,300, $1,505, $1,620, and $1,645 over the next five years. If the friend normally discounts investments cash flows at 6.50 percent annually, how much did Jeremy borrow? (Round answer to 2 decimal places, e.g. 15.25.)
You are a freshman in college and are planning a trip to Europe when you graduate from college at the end of four years. You plan to save the following amounts annually, starting today: $738, $670, $777, and $775. If the account pays 7.00 percent annually, how much will you have at the end of four years? (Round answer to 2 decimal places, e.g. 15.25.)
Cecelia Thomas is a sales executive at a Baltimore firm. She is 25 years old and plans to invest $3,800 every year in an IRA account, beginning at the end of this year until she turns 65 years old. If the IRA investment will earn 9.70 percent annually, how much will she have in 40 years, when she turns 65? (Round intermediate calculations to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.)
Cyclone Rentals borrowed $15,550 from a bank for three years. If the quoted rate (APR) is 8.55 percent, and the compounding is daily, what is the effective annual interest rate (EAR)? (Use 365 days for calculation. Round answer to 0 decimal places, e.g. 15%.)