1st question :Imagine that you have $20,000 to invest for 16 years. How much more interest will you earn if you choose an account that pays 7% compounded annually (j₁) instead of an account that pays a simple interest rate of 7% per annum?

Round you answer to 2 decimal places.

2nd question:

Frank had originally promised to pay Jane $1,250 3 months ago, $1,200 today and $1,050 6 months from now.

Frank missed his first payment and both parties have agreed to a new deal. Frank will now make two equal payments - one today and the remainder in 3 months.

Calculate each payment using an interest rate of 5.80% compounded monthly. Round your answer to 2 decimals.

Your Answer:

3rd:

A five-year $6,400 promissory note bearing interst at 6% compounded monthly (j₁₂) was sold after two years and three months. Calculate the sale price using a discount rate of 8% compounded quarterly (j₄). Round your answer to 2 decimal places.