Chapter 3 Section 3

# Chapter 3 Section 3 - n 17(S11HW At the start of each month...

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Chapter 3 Section 3 14. (S12HW) Shuda is the beneficiary of a trust fund which will pay her 1000 at the beginning of each month for the next 5 years. Calculate the present value of these payments assuming an annual effective interest rate of 7.2%. 15. (S09Q2) Sara wants to have \$10,000 when she graduates from college in four years so that she can take trips to Europe and Asia. She intends to accumulate the \$10,000 by making 48 monthly payments at the beginning of each month into a fund earning 9% compounded monthly. How much must Sara contribute each month to have \$10,000 at the end of 48 months. 16. (S12HW) You are given an = 37.3537 and an = 37.7272 . Calculate
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Unformatted text preview: n . 17. (S11HW) At the start of each month for 50 months, Julia deposits 100 into her bank account. At the end of 50 months, Julia has 6084.72. Calculate the annual effective interest rate being earned by Julia. 18. (S12HW) Zichen wants to accumulate a sum of money at age 65 so he can retire. In order to accomplish this goal, he can deposit 80 per month at the beginning of the month or 81 per month at the end of the month. Calculate the annual effective rate of interest earned by Zichen. 19. Book Problem 3.3, Number 6 20. Book Problem 3.3, Number 7 Answers: 14. 50,828.39 15. 172.56 16. 4717. 9.381% 18. 16.075% 19. 32.12891 20. 237...
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