Question
Answer the following compound interest questions: 1. Brian purchased a new bedroom set for his wifes birthday present. The cost of the bedroom set was
Answer the following compound interest questions:
1. Brian purchased a new bedroom set for his wifes birthday present. The cost of the bedroom set was $1,999 with no payments for six months. However, at the end of six months Brian owes the price of the bedroom set, plus 12% annual interest, compounded monthly. How much interest will Brian pay on his wifes birthday present?
2. Tim put $35,000 in a five-year CD paying 5.75% annual interest, compounded quarterly. What is the total amount Tim will receive when he withdraws his money after five years?
3. Andrew wants to pay off his car. He has a two-year loan at 9% annual interest that is compounded monthly. Andrew must pay $18,700 at the end of the two-year period. How much did Andrew originally borrow?
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