The following situations should be considered independently. You want to accumulate $77,961 for a down payment on a small business. You will invest $39,000 today in a bank account paying 8% interest compounded annually. Approximately how long will it take you to reach this goal? The Jasmine Tea Company purchased merchandise from a supplier for $46,676. Payment was a noninterest-bearing note requiring Jasmine to make five annual payments of $12,000 beginning one year from the date of purchase. What is the interest rate implicit in this agreement? You borrowed $21,000 from a friend and promised to pay the loan in 10 equal annual installments beginning one year from the date of the loan. Your friend would like to be

NEED

PV

N

I

FV