Question
a. You just purchased a parcel of land for $106,000. To earn a 9% annual rate of return on your investment, how much must you
a. You just purchased a parcel of land for $106,000. To earn a 9% annual rate of return on your investment, how much must you sell the land for in 4 years? Assume annual compounding. (Round to nearest penny, e.g. 1234.56)
b. You discover that you need a new laptop that costs $3,000. You charge the laptop to your credit card which charges a 12% annual interest rate. If you make no payments on the credit card for 5 years, how much will you owe on the card? Assume annual compounding. (Round to nearest penny, e.g. 1234.56)
c. Sam I Am invests $80,000 today at 10% per annum, compounded quarterly. What will the balance of Sam's investment be in 5 years? (Round your answer to the nearest penny.)
d. At what per annum rate must $240 be compounded daily for it to grow to $587 in 11 years? (Round to 100th of a percent and enter your answer as a percentage, e.g., 12.34 for 12.34%) (Assume 365 days in the year)
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