RichardMillerinvested $6,600at6% annual interest, and left the money invested without withdrawing any of the interest for8years. At the end of the8years,Richardwithdrew the accumulated amount of money.

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(a)What amount didRichardwithdraw, assuming the investment earns simple interest?

b)What amount didRichardwithdraw, assuming the investment earns interest compounded annually?

Concord Corporationsigned a lease for an office building for a period of10years. Under the lease agreement, a security deposit of $7,300is made. The deposit will be returned at the expiration of the lease with interest compounded at7% per year.

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What amount willConcordreceive at the time the lease expires?

Coronado Industriesowns a garage and is contemplating purchasing a tire retreading machine for $14,820. After estimating costs and revenues,Coronadoprojects a net cash inflow from the retreading machine of $3,100annually for7years.Coronadohopes to earn a return of8% on such investments.

What is the present value of the retreading operation?

Crane Companyis about to issue $276,000of6-year bonds paying an11% interest rate, with interest payable annually. The discount rate for such securities is12%.

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How much canCraneexpect to receive from the sale of these bonds?