1. You are planning to lend $5,000 to someone you know. If you charge him an annual interest rate of 4.6% compounded monthly, how much will he owe you in 3 years? Round to the nearest dollar.

2. Someone you know needs a loan and she is willing to pay you back $14,000 in exactly 9 years. If you'd like to earn 4.1% compounded annually on this loan, how much would you be willing to loan her today? Round to the nearest dollar.

3. You plan to deposit $2,000 today, $4,000 in one year and $2,000 in two years into an account earning 4.6% interest. What will the account balance be in 4 years? Round to the nearest dollar.

Answer rating: 100% (QA)

To calculate how much the borrower will owe you in 3 years if you lend him 5000 at an annual interes... View the full answer