Problem 2

2. $5,000 invested today for five years, earning annual interest of 10 percent compounded semi-annually 3. $8,000 invested in one year for four years, earning annual interest of 12 percent com- pounded quarterly Required: Determine the future amount of each investment. Problem 2 Susan White desires to know the amount of money that must be invested today to accumulate $100,000 five years in the future. The options are as follows: 1. x amount at an annual rate of interest of 10 percent 2. x amount at a semi-annual rate of interest of 5 percent 3. x amount at an quarterly rate of interest of 2 percent Required: Determine the amount of $x for each investment. Problem 3 John Rail, age 19, desires to invest $10,000 on each birthday when enjoying his twenties (20, 21...29) and then let the investment accumulate interest until he is 65