Homework chap 6.docx - 1 Kevin Jackson invests $32,300 at 8...

This preview shows page 1 - 2 out of 4 pages.

1. Kevin Jackson invests $32,300 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Kevin withdraws the accumulated amount of money. (a) Compute the amount Kevin would withdraw assuming the investment earns simple interest.
(b) Compute the amount Kevin would withdraw assuming the investment earns interest compounded annually.
(c) Compute the amount Kevin would withdraw assuming the investment earns interest compounded semiannually.
2. (a) What is the future value of 24 periodic payments of $4,190 each made at the beginning of each period and compounded at 8%?
(b) What is the present value of $3,990 to be received at the beginning of each of 29 periods, discounted at 5% compound interest?
(c) What is the future value of 16 deposits of $2,330 each made at the beginning of each period and compounded at 10%?
(d) What is the present value of 7 receipts of $3,150 each received at the beginning of each period, discounted at 9% compounded interest?
3. The Headland Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture