Discuss in Detail 1- Which one of these problems was the most difficult? What made the problem difficult? 2- Perhaps you had issues with the same problem? What helped you? 3-What suggestions do you have for the problem they had an issue with? Can you explain it to them? 4- What questions do you have for your professor and classmates regarding this problem set?

Calculate the future worth (future value) of $2000 dollars earning an interest rate of 6.5 pct. Compounded semi-annually for 5 years.

$2,268.45

$2,753.79

Correct

$3,754.27

$2,740.17

You are planning to send your child to a summer camp in 9 months. The camp will cost you $2,000 at that time. You have decided to invest a lump sum of money now that will grow to $2,000 by the time it is needed. Assuming the money grows at a nominal annual interest rate of 12.2% compounded daily, how much money should you set aside now to have the funds available when needed?

$1,993.99

$1,834.60

$1,825.15

Correct

The effective rate of 6.5% interest rate compounded semi-annually is________.

6.61%

Correct

13.42%

6.72%