Question
1.) Sue plans to save $3,521, $0, and $5,576 at the end of Years 1 to 3, respectively. What will her investment account be worth
1.) Sue plans to save $3,521, $0, and $5,576 at the end of Years 1 to 3, respectively. What will her investment account be worth at the end of the Year 3 if she earns an annual rate of 4.96 percent?
2.) You just obtained a loan of $14,000 with monthly payments for four years at 5 percent interest, compounded monthly. What is the amount of each payment?
3.) Your anticipated wedding is three years from today. You don't know who your spouse will be but you do know that you are saving $5,000 today and $6,000 one year from today for this purpose. You also plan to pay the final $9,000 of anticipated costs on your wedding day. At a discount rate of 5.1 percent, what is the current cost of your upcoming wedding?
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