Q.1 You deposit $1,000 in your bank account. If the bank pays 4% compounded interest, how much will you accumulate in your account after 10 years? What if the bank pays interst on semi-annual basis?

Q.2 If you earn 6% per year on your bank account, how long will it take an account with $100 to double to $200?

Q.3 Your landscapping company can lease a truck for $8,000 a year(paid at year-end) for six years. It can instead buy the truck for $40,000. The truck will be valueless after six years. If the interest rate you company can earn on its funds is 7%, is it cheaper to buy or lease?

Q.4 If you borrow $1,000 and agree to repay the loan in five equal annual payments at an interest rate of 12%, what will your payment be?

Q.5 You have borrowed $24,000 and agreed to pay back the loan with monthly payments of $200. If the interest rate is 12%,how long will it take you to pay back the loan?