Question
a.) A credit card account that charges interest at the rate of 0.75% per month would have an effective annually compounded rate of _______ and
a.)A credit card account that charges interest at the rate of 0.75% per month would have an effective annually compounded rate of _______ and an APR of _______.
b.)What is the present value of your trust fund if it promises to pay you $85,000 on your 37th birthday (7 years from today) and earns 4% compounded annually?
c.)Give me $10,000 today and I'll return $16,000 to you in five years," offers your investment broker. To the nearest tenth of a percent, what annual interest rate is being offered?
d.)How much money would you have to put away at the end of each year to have $1,600,000 when you retire 26 years from now if you can earn 4% on your money?
e.)How much can be accumulated if $2,375 is deposited at the end of each month for the next 28 years, if the account earns 4.2% APR (i.e. 0.35% per month).
f.)Assume the total expense for your current year in college equals $35,000. Approximately how much would you have needed to invest 8 years ago in an account paying 6.0% compounded annually to cover this amount?
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