Question

 9. Anthony invested a sum of money 4 yr ago in a savings account that has since paid interest at the rate of

 7%/year compounded quarterly. His investment is now worth $22,438.81. How much did he originally

 invest? Please round the answer to the nearest cent.

 10. Joe plans to deposit $300 at the end of each month into a bank account for a period of 2 yr, after which he

 plans to deposit S500 at the end of each month into the same account for another 4 yr. If the bank pays

 interest at the rate of 8%/year compounded monthly, how much will Joe have in his account by the end of 6

 yr? (Assume no withdrawals are made during the 6-yr period.)

 

 11. Luis has $160,000 in his retirement account at his present company. Because he is assuming a position with

 another company, Luis is planning to roll over his assets to a new account. Luis also plans to put

 $4,000/quarter into the new account until his retirement 18 yr from now. If the account earns interest at the

 rate of 8%/year compounded quarterly, how much will Luis have in his account at the time of his retirement?

 Please round the answer to the nearest cent.

 Hint: Use the compound interest formula and the annuity formula.

 12. The price of a new car is S20,000. Assume an individual makes a down payment of 25% toward the purchase

 of the car and secures financing for the balance at the rate of 12%/year compounded monthly.

 What monthly payment will she be required to make if the car is financed over a period of 42 months? What

 will the interest charges be if she elects the 42-month plan? Round your answers to the nearest cent.

Answer 1