Question
(a) David Broke has $10,000 to deposit in his bank, Bancordia; if the bank is willing to pay annual interest of 2%, how much money
(a) David Broke has $10,000 to deposit in his bank, Bancordia; if the bank is willing to pay annual interest of 2%, how much money will David Broke have in 5 years?
(b) Suppose the bank is willing to pay 1.5 % twice a year, how much money will David Broke have in 5 years?
(c) Imagine that after 5 years David Broke wants to buy a house; the bank is willing to loan him $120,000, which is unrelated to his saving. The bank expects David broke to make monthly payments by the end of each month for 30 years. How much should David Broke pay the bank on a monthly basis if the bank is charging him an interest of 3%?
(d) Amortize the loan to show how much principal and interest David will have to pay at the end of 3 years.
Please answer a, b, c and d in full sentences. thank you!
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