Question
1.It is now January 1, 2019, and you will need $1,000 on January 1, 2023, in 4 years. If you have only $750 on January
1.It is now January 1, 2019, and you will need $1,000 on January 1, 2023, in 4 years.
If you have only $750 on January 1, 2020, what interest rate, compounded annually for 3 years, must you earn to have $1,000 on January 1, 2023?
2.It is now January 1, 2019, and you will need $1,000 on January 1, 2023, in 4 years.
Suppose you can deposit only $200 each January 1 from 2020 through 2023 (4 years). What interest rate, with annual compounding, must you earn to end up with $1,000 on January 1, 2023?
3. It is now January 1, 2019, and you will need $1,000 on January 1, 2023, in 4 years.
Your father offers to give you $400 on January 1, 2020. You will then make six additional equal payments each 6 months from July 2020 through January 2023. If your bank pays 8% compounded semiannually, how large must each payment be for you to end up with $1,000 on January 1, 2023?
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