Unformatted text preview: 7 years. He pays 10.8% interest, compounded monthly. What is the amount of each payment? What is the total amount of interest Fritz will pay? Formula: Solution of the problem: Variables: 3. An account invested in a money market fund grew from $73,293.51 to $73,593.20 in one month. What was the simple interest rate? 4. Jimmy needs $94,000 in 4 years. What yearly payment would he have to make into a sinking fund with an interest rate of 8% compounded annually? 5. A new employee charged $3950 on his credit card to relocate for his first job. After noticing...
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- Fall '08