Question

13. How much must you deposit in an account today so that you have a balance of $ 10,974 at the end of 12 years if interest on the account is 9 % p.a., but with quarterly compounding? (Round your answer to 2 decimal places; record your answer without commas and without a dollar sign).

14. The Milken Company is offering you an investment that promises you $10,000 at the end of 8 years if you invest $ 7,267 today. What is the annual return on this investment? (Compute your answer as a percent rounded to 2 decimal places. Record without a percent sign. For example, record .0848765 = 8.48765% as 8.49)

15. Sam refuses to retire until his retirement account has a balance of at least $ 367,333 . Sam refuses to make any more deposits in the account. The account currently has a balance of $ 128,876 and earns 6% per year, compounded semi-annually. How long does Sam have before he will retire? (You are computing number of years. Round your answer to one decimal place. For example, record 14.294 years as 14.3).

Answer 1

13)