1.---320,000 is invested for fifteen years at 1.5 % interest compounded monthly. What is the future value?

2.---Inflation is often calculated using continuous compound interest. The cost of a mixture of items and the salary that it takes to purchase these items grows continuously. If the inflation rate is 2.5% compounded continuously, how large of a salary will somebody need in thirty years to have the same buying power as a $30,000 salary in today's dollars?

3.--How much money can be borrowed at 4.25% interest compounded semiannually, if the borrower is willing to pay back $75,000 in ten years?

4.--A young person is trying to figure out how to retire comfortably, which believes will take $2,000,000. a)How much must a twenty year old put aside for 45 years at 4.3% interest compounded quarterly to reach the goal? b)How much must a forty five year old put aside for 20 years at 4.3% interest compounded quarterly to reach the goal? c) How much must the twenty year old put aside for 45 years at 7.5% compounded quarterly to reach the goal? 2.8%compounded quarterly?

5.---A doctor decides to put aside some money to have for a rainy day, which fortunately never seems to come. First she puts aside $25,000 for three years at 3.25% interest compounded monthly interest. After three years the economy changes and she is able to take that money and put it into an account that earns 6.4% interest compounded quarterly for fifteen years. How much does the doctor have at the end of the eighteen years investment time?

6.---A young person is deciding whether to start investing now or wait. After all, he is young, has many expenses like cars and a house, and wants to enjoy his money while being young. a) If interest is 5.8% compounded monthly, how much money will the investor have if he invests $600 per month for 40 years? How much of that money comes from interest? b) If the interest is kept at 5.8% compounded monthly, how much money will the investor have if he puts aside $1200 per month for 20 years? How much money will be interest?

7.---A company wants to save $200,000,000 for furniture acquisitions. How much money must the company put aside quarterly for 15 years at 6.5% interest compounded quarterly? How much of the goal comes from the deposits and how much is interest?

8.---A bachelor is trying to decide between two mortgage options to finance the cost of a $225,000 house. Find the monthly payments and the total interest paid for both options. a) The bachelor pays no down payment and finances the house with a 40 year mortgage at 6.25% interest. No points are paid at closing. b) The bachelor pays a 20% down payment and finances the house with a 15 years mortgage at 5.50% interest. No points are paid closing. c) Which option you think is better for the bachelor?