.) If $25,000 is deposited in an account that earns interest compounded monthly becomes $32,000 after 2 years, what is the interest rate? 2.) A sala set is offered for sale for $50,000 down payment and $1,500 every 3 months for the balance for 24 months. If interest is to be computed at 4% compounded quarterly, what is the cash price equivalent of the sala set? 3.) Jessa Mae wants to have $50,000 at the end of 4 years for her graduation expenses and blow out party. She plans to deposit a certain amount, at the end of each month to achieve this goal. If her deposit pays 8% compounded monthly, what should be her monthly deposit?
.) If $25,000 is deposited in an account that earns interest compounded monthly becomes $32,000 after 2 years, what is the interest rate? 2.) A sala set is offered for sale for $50,000 down payment and $1,500 every 3 months for the balance for 24 months. If interest is to be computed at 4% compounded quarterly, what is the cash price equivalent of the sala set? 3.) Jessa Mae wants to have $50,000 at the end of 4 years for her graduation expenses and blow out party. She plans to deposit a certain amount, at the end of each month to achieve this goal. If her deposit pays 8% compounded monthly, what should be her monthly deposit?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 2STP
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1.) If $25,000 is deposited in an account that earns interest compounded monthly becomes $32,000 after 2 years, what is the interest rate?
2.) A sala set is offered for sale for $50,000 down payment and $1,500 every 3 months for the balance for 24 months. If interest is to be computed at 4% compounded quarterly, what is the cash price equivalent of the sala set?
3.) Jessa Mae wants to have $50,000 at the end of 4 years for her graduation expenses and blow out party. She plans to deposit a certain amount, at the end of each month to achieve this goal. If her deposit pays 8% compounded monthly, what should be her monthly deposit?
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