1. Antonio must pay a lump sum of $6000 in 5 years. What amount deposited today at 6.2% compounded annually will amount to $6000 in 5 years? Is thissimple interest, compound interest or annuity?is it simple interest, compound interest or annuity?
2. A bank offers a CD that pays a simple interest rate of 5.5%. How much do you need to put in this CD now in order to have $8000 for a remodeling project in two years? Is thissimple interest, compound interest or annuity?is it simple interest, compound interest or annuity?

Answer rating: 100% (QA)

For the first scenario To find out how much amount needs to be deposited today at 62 compounded annu... View the full answer