1. Julia saves $38 at the end of each week and deposits the money in an account paying 7% compounded monthly. How much will Julia accumulate in 6 years? How much of the accumulated amount is interest?

2. A contract can be fulfilled by making an immediate payment of $6468, or equal payments at the end of every sixmonths for 4 years. What is the size of the semi-annual payments at 4% per annum compounded quarterly?

3. Katarina bought a car priced at $12,311 for 6% down and equal semi-annual payments for 3 years. If interest is 8% compounded monthly, what is the size of the semi-annual payment?

4. Seamus has made deposits of $203.00 into his savings account at the end of every threemonths

for 15 years. If interest is 9% per annum compounded monthly and he leaves the accumulated balance for another 3 years, what would be the balance in his account then?

Answer rating: 100% (QA)

1 To solve this question Julias savings can be modeled using the formula for compound interest A P 1 rnnt Where A is the amount of money accumulated a... View the full answer