answer all the problems by first giving the right formulas (without numbers) and then computing the numerical answers and results.

Showing ALL your work is required.

A.

1. Henry makes a short-term investment of $12,500 at a 4% interest rate for 1 year. How much will he receive at the end of the year?

2. He makes a new investment for a longer period of time. He invests $8,000 at an 8% interest rate per year. How much will he receive after 7 years? What is the amount of interest?

3. After 5 years, Henry wants to spend $12,000 for a road trip. How much should he deposit into his bank account now that pays an interest rate of 6%?

4. We suggest that Henry invests $15,000 during 12 years in a project that earns $28,000. What is the interest rate?

5. Henry has a balance of $5,500 in his bank account that earns 9% each year. How many years does he need to wait before buying a car that costs $12,430?

6. Henry opens a savings account that has a 4.5% annual interest rate. After 18 months, he receives $75,000. How much did he invest?

7. Henry invests $14,000 at a 3.5% annual interest rate. His brother Bob invests at the same time $12,000 at a 6.75% annual interest rate. When do the two investments have the same future value?