Question: Stuart Daniels estimates that he will need $25,000 to set up a small business in 7 years. How much must Stuart invest now at 8%

  1. Stuart Daniels estimates that he will need $25,000 to set up a small business in 7 years. How much must Stuart invest now at 8% interest compounded quarterly to achieve his goal? How much compound interest will he earn on the investment?

  1. Your bank pays 9% interest, compounded annually. How much should you deposit now to yield an annuity payment of $600 at the beginning of each year, for 16 years.

  1. On April 12, Michelle Lizaro borrowed $5,000 from her credit union at 9% simple interest for 80 days. The credit union uses the ordinary interest method. What is the amount of interest on the loan? What is the maturity value of the loan? What is the maturity date of the loan?

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