# Question: Then answer the following questions 1 You deposit 10 000 How

Then answer the following questions:

1. You deposit $10,000. How much will you have in 4 years at

(a) 8% compounded annually, and

(b) At 12% compounded annually?

2. A savings and loan association offers depositors a $10,000 lump-sum payment 4 years hence.

(a) How much will you be willing to deposit if you desire an interest rate of 8% compounded annually?

(b) How much at an interest rate of 12%?

3. Repeat requirement 2, assuming an interest rates of 6% and do the calculation twice, assuming

(a) Annual and then

(b) Semiannual compounding.

1. You deposit $10,000. How much will you have in 4 years at

(a) 8% compounded annually, and

(b) At 12% compounded annually?

2. A savings and loan association offers depositors a $10,000 lump-sum payment 4 years hence.

(a) How much will you be willing to deposit if you desire an interest rate of 8% compounded annually?

(b) How much at an interest rate of 12%?

3. Repeat requirement 2, assuming an interest rates of 6% and do the calculation twice, assuming

(a) Annual and then

(b) Semiannual compounding.

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