1. If $100 earns 3% interest compounded annually, find the future value after 10 years? 2. Mr....

Question:

1. If $100 earns 3% interest compounded annually, find the after 10 years?
2. Mr. West wishes to purchase a condominium for $240,000 cash upon his retirement 10 years from now. How much should he deposit at the end of each month into an paying 2.7% interest compounded monthly in order to accumulate the required savings?
3. The income of a typical family in a certain city is currently $39,216 per year. Family finance experts recommend that mortgage payments not exceed 25% of a family's income. Assuming a current mortgage interest rate of 4.2% compounded monthly for a 30-year mortgage with monthly payments, how large a mortgage can the typical family in that city afford?
4. Calculate the of $50 after a year if it is deposited at 2.19% compounded daily?
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...