Practice on compound interest Problem 1: Find the accumulated amount after 5 years if SR1700 is invested at 6.25% per year compounded quarterly. What is the amount of the interest earned? Hint: A=P[1+(r/m) and I= A-P. Problem 2: Housing costs have been increasing at 6% per year compounded annually for the past 4 years. A house currently worth SR 200,000 would have had what value 4 years ago? Hint: A=P[1+(r/m)]" and I= A-P. Problem 3: A newborn child receives a SR5000 bank voucher gift towards a college education from his grandfather. How old is the child when he takes from the bank an amount of SR22702 to pay his education fees if his gift is invested at 9% per year compounded quarterly? What is the amount of the interest earned by the child? Hint: A=P[1+(r/m)]" and I-A-P. Practice on sinking fund Problem 1: You opened an account on January 31 with contribution of SR 2000. You plan to make a contribution of SR 2000 thereafter on January 31 of each year until your retirement in 20 years. If the account earns interest at the rate of 8% per year compounded yearly, how much will you have in your account when you retire