If you had $1000 now and invested it at 4%, how much would it be worth 12 years from now? If the interest rate is 6 % compounded quarterly, how long (number of qua rters) will it take to earn $100 interest on an initial deposit of $300? An investment of $10,000 six years ago has now grown to $20,000. The annual interest rate on this investment, assuming annual compounding, is EZ Pay Loans will lend you $100 today with repayment of $117.50 due in 1 month. Determine 1. 2. 3. 4. the Nominal and effective rate of this loan. 5. A young businessperson wishes to buy a house but can afford monthly payments of only $500. Thirty-year loans are available at 6% inte rest compounded monthly. If she can make a $5000 down payment, what is the price of the most expensive house that she can afford to purchase? 6. While in college, Ellen received $40,000 in student loans at 8 % interest. She will graduate in June and is expected to begin repaying loans in 5 equal annual payments. Compute her yearly payments 7. Dylan deposits $10,000 now and makes an additional deposit of $5,000 at the end of year 3 in the same account. Determ ine the balance in the account at the end of 10 years if the interest rate is a nominal 8%, compounded quarterly 8. The amount required to establish an endowment to provide an annual scholarship of $20,000 requires a deposit into an account paying 8% is nearest to