Question 3: (20 points)

(A) Mr. Zuhair deposits $ 60,000 into a bank, which pays 4% interest that is compounded semiannually. What will he have in his account at the end of five years and compound interest amount? (7 points)

(B) The owner of a small factory thinks that he will need $ 75,000 for new equipment in 10 years. He decides that he will put aside the money now so that after 10 years the $ 75,000 will be available. His bank offers him 10% interest compounded semiannually. What is the present value of the $ 75,000? (6 points)

(C) A person deposited $ 75,000 at a bank at an interest rate of 12% compounded quarterly. Find the effective rate (APY). Write your answer in percentage rounded to the nearest hundredth.

(7 points)