Culminating Day 1 2. Now that the campfire area has been created, Student Council wants to furnish it but they are going to need to borrow money to pay for it. The school is willing to lend them money to buy 8 chairs at a cost of $225 each. the a) If Student Council made $500 on the Haunted House how much money would they have if they invested it for 3 years at 8% p.a compound interest. Give answer to nearest cent. b) How much would the 8 chairs cost in 3 years if inflation was 2% the first year and 1.5% in each of the second and third years? c) Based on the answer from parts (a) and (b) (ie after the 3 years have passed) how much more money does Student Council need to buy the chairs?

Culminating Day 1 2. Now that the campfire area has been created, Student Council wants to furnish it but they are going to need to borrow money to pay for it. The school is willing to lend them money to buy 8 chairs at a cost of $225 each. the a) If Student Council made $500 on the Haunted House how much money would they have if they invested it for 3 years at 8% p.a compound interest. Give answer to nearest cent. b) How much would the 8 chairs cost in 3 years if inflation was 2% the first year and 1.5% in each of the second and third years? c) Based on the answer from parts (a) and (b) (ie after the 3 years have passed) how much more money does Student Council need to buy the chairs?

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 4.8P

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