Question: it is about Simple Interest Present Value 1-Ramon needs $25,000 at the end of 6 months for a down payment on a new house. What

it is about Simple Interest Present Value

1-Ramon needs $25,000 at the end of 6 months for a down payment on a new house. What amount should he deposit today in an account paying 3.6% simple interest in order to reach his goal?

2-Find the amount Jose should deposit today in order to have $5,000 in his account 6 years from now if the account earns 4% simple interest.

3-Bonnie wants to have $3,000 in her account in 10 years. Find the amount she should deposit today in order to reach her goal if the account earns 3% simple interest.

4-Chuck will pay $8,000 to retire a loan after 2 years. If the principal and interest are repaid in one lump sum, how much did Chuck originally borrow at 2.4% simple interest?

5-Find the amount Scooter should deposit today if he wants $1,000 in his account in 8 years. Assume an interest rate environment of 3% simple interest.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!