HW03A

1. Arnold makes an investment of $ 100,000 in a bank for a period of 5 years. How much will he receive at the end of the term, if the bank pays an interest rate of 6% at Simple Interest.

2. Arnold makes an investment of $ 100,000 in a bank for a period of 5 years.

How much will he receive at the end of the term, if the bank pays an interest rate of 6%, compounded annually?

6. You have $5,000 you want to invest for the next 45 years.

You are offered an investment plan that will pay you 6 percent per year for the next 15 years and 10 percent per year for the last 30 years.

How much will you have at the end of the 45 years?

7. Isabelle wants to save up an amount of $150,000 for her son's college education fees, coming up in 5 years.

Find the amount that should be invested today, if the bank pays an interest rate of 5%, compounded annually.

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