Determine the unknown quantity for each of the following independent situations using the appropriate interest tables: 1.

Question:

Determine the unknown quantity for each of the following independent situations using the appropriate interest tables:

1. Jeff and Nancy want to start a trust fund for their newborn son, Mark. They have decided to invest $5,000 today. If interest is 8% compounded semiannually, how much will be in the fund when Mark turns 20?

2. Nixon Corporation wants to establish a retirement fund. Management wants to have $1,000,000 in the fund at the end of 40 years. If fund assets will earn 12%, compounded annually, how much will need to be invested now?

3. How many payments would Star, Inc., need to make if it purchases a new building for $100,000 with annual payments made at the end of each year of $16,401.24 and interest of 16%, compounded annually?

4. An investment broker indicates that an investment of $10,000 in a CD for 10 years at the current interest rate will accumulate to $21,589. What is the current annual rate of interest if interest is compounded annually?

Broker
A broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...