16. Calculate the future value of $8,000 earning 9% interest, compounded quarterly, for 11 years. Round to the nearest cent. 17. What lump sum should be deposited in an account that will earn at an annual rate of 12%, compounded quarterly, to grow to $110,000 for retirement in 25 years? 18. How much money should be invested in an account that earns 9% interest, compounded quarterly, in order to have $5,000 in 5 years? Round to the nearest cent. 19. You borrow $7,000 to help pay your college expenses. You agree to repay the loan at the end of 4 years at 8% interest, compounded quarterly. What is the maturity value of the loan? 20. A couple plans to invest money for their child's college education. What principal must be deposited by the parents when their child turns 7 in order to have $30,000 when the child reaches the age of 18? Assume the money earns 6% interest, compounded quarterly.
16. Calculate the
cent.
17. What lump sum should be deposited in an account that will earn at an annual rate of 12%, compounded quarterly, to
grow to $110,000 for retirement in 25 years?
18. How much money should be invested in an account that earns 9% interest, compounded quarterly, in order to have
$5,000 in 5 years? Round to the nearest cent.
19. You borrow $7,000 to help pay your college expenses. You agree to repay the loan at the end of 4 years at 8%
interest, compounded quarterly. What is the maturity value of the loan?
20. A couple plans to invest money for their child's college education. What principal must be deposited by the parents
when their child turns 7 in order to have $30,000 when the child reaches the age of 18? Assume the money earns 6%
interest, compounded quarterly.
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