1. Calculate the future value of each of the following investments

a. Felix invested $2500 in a GIC that earns 7.2% interest, compounded semi-

annually for 5 years.

b. Sheila invested $2000 in a GIC that earns

6.5%, compounded monthly, for 5 years.

2. Jordan and Hank received equal inheritances of $4000, which they invested for 10 years at 7.4%. Jordans compounds quarterly, and Hanks compounds weekly.

a. Calculate the interest earned by each of them.

b. Compare their rates of return.

3. Peter wants to have $145 000 in his savings account in 18 years. His account earns 6.5% interest and it is compounded monthly. What amount would he need to put in the account today to meet that future value goal?

4. Linda has had her savings account for 34 years and it now contains $137 000. Her account earns 6.5% interest compounded semi-annually. What amount did she originally invest?

5. Fred invested $19 000 compounded quarterly for 8 years and he now has $33 626.56 What is the interest rate of his investment account?