Question
1.A. Sue enjoys her coffee. She spends $30.00 per month at the coffeeshop. If she deposited that $30 per month into an account paying 5%
1.A. Sue enjoys her coffee. She spends $30.00 per month at the coffeeshop. If she deposited that $30 per month into an account paying 5% compounded monthly for 10 years, how much money would she have in the account?
B. Suppose that you invest in an account with an APR of 5.2%, compounded continuously. Determine the annual percentage yield (APY), to the nearest hundredth of a percent.
C. Suppose that you want to have a $200,000 retirement fund after 40 years. How much will you need to deposit now if you can obtain an APR of 12%, compounded daily? Assume that no additional deposits are to be made to the account.
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