Do calculations on scrap paper as needed. Worked-out solutions are provided at end.
- Alfred Rodriguez deposits $8,000 in Yoma Bank which pays 6% interest, compounded quarterly. How much will Alfred have in his account at the end of six years?
- Given the following, calculate the effective rate (to the nearest hundredth percent): Principal, $9,000; Interest rate, 8%, compounded semiannually.
- $1,800 compounded daily for 10 years will grow to _____ at 6.50%.
- Jim Henson wants to buy his son a Toyota Land Cruiser in five years. The cost of the car should be $40,000. Assuming a bank rate of 6%, compounded quarterly, how much must Jim put in the bank today?
- Check your answer in No. 4 by the compound table.
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