Question

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.



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  • CreatedFebruary 20, 2015
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