Find the effective annual compound interest rate that is equivalent to a 3% monthly simple interest rate assuming a duration of 1 year. Repeat assuming a duration of 2 years. You hit the jackpot! the prize money is $900 million now in a lump sum, which, you have been told, is worth $1.3 billion in 30 years. Suppose no tax is involved. Determine the effective annual compound interest rate that is used to come up with the future value. What is the present worth of a uniform series of 10 payments in the amount of $6,000 each that begin two years from now, if the compound interest rate is 8% per year? 4. You acquire a 30-year mortgage with a fixed monthly compound interest rate of 029% to purchase a house that costs $250,000. in addition to the regular monthly mortgage payment that the lender requires, you decide to pay an additional $50 each month starting with the first payment. What is the total number of payments (full and partial) you will make now, and what is the amount of the final payment? Carry as many digits forward as possible during your calculation. A company borrows $20 million now to build a new warehouse facility. What is the amount of each payment if the loan is to be repaid in six equal annual payments, starting a year from now? The compound interest rate is 10% per year. The cost of operating pumps in a water distribution system was $1.4 million for the first 3 years. Beginning in year 4. The cost increased by $30,000 each year for the next 12 years. What is the present worth in year 0 of all of these costs at a compound interest rate of 6% per year