QUESTION $3$

An investment of $$14,000$ is growing at $5\%$ compounded semi$-$annually.

$($a$)$ Calculate the future value of this investment at the end of year $1.$$

$($Round to the nearest cent$)$

$($b$)$ If the interest rate changed to $4\%$ compounded monthly at the end of year $1,$ calculate the future value of this investment at the end of year $4.$

$ $($Round to the nearest cent$)$

$($c$)$ Calculate the total amount of interest earned from this investment during the $4-$year period. $

Round to the nearest

cent$)$

QUESTION $4$

Harris Machinery received a demand loan of $$180,000.$ It repaid $$70,000$ at the end of the first year, $$85,000$ at the end of the second year, and the balance at the end of the third year. The interest rate charged on the loan was $5\mathrm{.}71\%$ compounded semi$-$annually for the first year, $5\mathrm{.}38\%$ compounded quarterly for the second year, and $5\mathrm{.}14\%$ compounded monthly for the third year.

$($a$)$ What was the balance of the loan at the end of the first year? $

$($Round to the nearest cent.$)$

$($b$)$ What was the balance of the loan at the end of the second year? $

$($Round to the nearest cent$)$

$($c$)$ What amount at the end of the third year will settle the loan?

Round to the nearest cent$)$