End of Chapter Problems $-$ Chapter $4(4-28,$ multiples of $4)$

If Samantha invests $$700$ today in an account that pays $4$ percent interest compounded annually, how much will she have in her account four years from today? $($L$04-2)$

$8.$

What is the present value of $$25,000$ to be received in $15$ years at a

o $($a$)$

$6\mathrm{.}2$ percent interest rate and

$0($b$)$

$9\mathrm{.}6$ percent rate?

Explain why the present value is lower when the interest rate is higher. $($LO $4-3)$

$12.$

Suppose you invest $$385$ at the end of each of the next eight years.

$0($a$)$

If your opportunity cost rate is $7$ percent compounded annually, how much will your investment be worth after the last $$385$ payment is made?

o $($b$)$

What will be the ending amount if the payments are made at the beginning of each year?

Compute the amount Amanda must deposit in an account today so that she can pay herself