4-6

I. If I invest $10,000 today at 8% interest, how much money will I have in ten years? 2. If I invest $10,000 today at 8% interest, how much money will I have in ten years if interest is compounded semi- annually? Why is the answer different from Question #1? 3. If I invest S5000 a year for five years at 5% interest, how much interest will I earn in total? 4. I am owed a payment of S15,000 in five years. What is my note receivable balance today if the interest rate is 7%? How much interest will I earn on the note? 5. I have a capital lease obligation with five annual payments of $3000 at an interest rate of490. What is my lease liability? How much interest will I pay on the lease? 6. I owe $9,811 on a twenty-quarter installment note payable. If the interest rate is 8%, how much is the quarterly payment