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- Suppose James will have $25,000.00 for a down payment on a house in 6 years. How much would he have to invest today (present value) if his investment earns a nominal rate of 5 ¼ % compounded monthly? b. How much interest did James’s account earn during the 6 years?Tony Bautista needs $25,000 in 4 years. What amount must he invest today if his investment earns 12% compounded annually? What amount must he invest if his investment earns 12% annual interest compounded quarterly?Frank invested $10,000 at 15% simple interest. How much interest will he earn each year?
- 12. If John wants to have $35,000 in 9 years, how much should he invest today in an account that pays 8% interest compounded annually?Mike Gordon wishes to have $80,000 in five years. If he can earn annual interest of 2%, how much must he invest today? $42,170< $72,480 $76,080 $88,320Charlie wants to withdraw $12,000 each year forever from his account. At an interest rate of 6% per annum, the amount he should deposit in his account should be: a. $150,000 b. $250,000 c. $200,000 d. $120,500
- A man wants to invest $10,000 at 3.5% interest. How much will he have in his account in 7 years and three months?Please answer Logan is going to invest $61,000 and leave it in an account for 20 years. Assuming the interest is compounded continuously, what interest rate, to the nearest hundredth of a percent, would be required in order for Logan to end up with $103,000 ?8. Jeremy has saved up $252,000. How much more must he save each year over the next 20 years in order to have a total of $1 million? Jeremy earns 5% interest, compounded annually.
- Jim Green wants to receive $3,500 each year for 12 years. How much must Jim invest today at 12% interest compounded annually?Benjamin wants to have $12,000 in 15 years after investing in an account that earns 4.2% compounded quarterly. How much should he invest?Suppose that Jacob would like to invest at the end of each month for the next 15 years into an account paying 6.72% compounded monthly in order to accumulate $10,000 at the end of that time? How much money must Jacob deposit into the account each month? How much interest will he have earned?
