Question
1. You inherit $143,000 today. Rather than spending it, you decide to invest it. If you earn 8% per year (compounded annually), how much money
1. You inherit $143,000 today. Rather than spending it, you decide to invest it. If you earn 8% per year (compounded annually), how much money will you have in 32 years? Round to the nearest cent.
2. You are planning to lend $4,000 to someone you know. If you charge him an annual interest rate of 5.1% compounded monthly, how much will he owe you in 3 years? Round to the nearest cent.
3. Someone you know needs a loan and she is willing to pay you back $12,000 in exactly 9 years. If the appropriate discount rate is 3.6% compounded annually, how much would you be willing to loan her today? Round to the nearest cent.
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