Hello,

I am having a hard time figuring out the 3 questions below. If you can provide step-by-step instructions on how you arrived at the answer, I would appreciate it. It will help me with other questions I have. Thank you.

1. You are going to withdraw $600 at the end of each year for the next 4 years from an account that pays an interest rate of 6% compounded annually. The account balance will reduce to zero when the last withdrawal is made. How much interest will you earn on the account of the 4-year life?

2.You are borrowing $6000 today. The loan is an amortized 6-year loan with an APR of 8 percent. The loan requires that $1000 of the principal amount be repaid each year. Payments are to be paid annually. What is the amount of the interest for the 3^rd year of the loan?

3. you own a bond issued by Lee railroad that promises to pay the holder $100 annually forever. You plan to sell the bond 3 years from now. If similar investments yield 6 percent at that time, how much will the bond be worth?

Thank you for your time.