FNAN 301Lab problems – 1/28/2011Group lab problem (Summer C 2010, quiz 1, question 2, version 2) Clint just deposited $19,500 in an account that will earn 8.1 percent per year in compound interest for 12 years. If Mona deposits $19,500 in an account in 1 year from today that earns simple interest, then how much simple interest per year must Mona earn to have the same amount of money in 12 years from today as Clint will have in 12 years from today? Group lab problem Ginger plans to invest $1,500 in 5 years from today. She will earn compound interest of 21.4 percent per year. Today, Chang can make an investment and earn simple interest of 8.7 percent per year. If Chang wants to have just as much in 9 years from today as Ginger will have in 9 years from today, then how much should Chang invest today?Group lab problem Velma just deposited $950 in an account that will earn 7.4 percent per year in simple interest for 8 years. If Gretchen makes a deposit in an account in two years that earns compound interest of 9.7 percent per year, then how much must Gretchen invest in 2
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Deposit account, Lab problem, Group lab problem