Question

1. A man deposits $ 29,700 into a bank, which pays 4% interest that is compounded semiannually. What will he have in his account at the end of three years?

2. The owner of a small factory thinks that he will need $ 71,800 for new equipment in 10 years. He decides that he will put aside the money now so that after 10 years the $ 71,800 will be available. His bank offers him 8% interest compounded semiannually. What is the present value of the $ 71,800?

3. A person deposited $ 25,000 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.