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Antonio must pay a lump sum of $6000 in 5 years. What amount deposited today at 6.2% compounded annually will amount to $6000 in 5

  1. Antonio must pay a lump sum of $6000 in 5 years. What amount deposited today at 6.2% compounded annually will amount to $6000 in 5 years? Is thissimple interest, compound interest or annuity?is it simple interest, compound interest or annuity?
  2. A bank offers a CD that pays a simple interest rate of 5.5%. How much do you need to put in this CD now in order to have $8000 for a remodeling project in two years? Is thissimple interest, compound interest or annuity?is it simple interest, compound interest or annuity?

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