Jim Ryan, an owner of a Burger King restaurant, assumes that his restaurant will need a new roof in 9 years. He estimates the roof will cost him $10,100 at that time.
What amount should Jim invest today at 8% compounded quarterly to be able to pay for the roof?
You choose to invest your $3,460 income tax refund check (rather than spend it!) in an account earning 4% compounded semiannually. How much will the account be worth in 4 years?
Jazelle Momba wants to visit her family in Zimbabwe in 2022, which is 8 years from now. She knows that it will cost approximately $8,200 including flight costs, on-the-ground costs, and extra spending money to stay for 4 months. If she opens an account that compounds interest at 4% semiannually, how much does she need to deposit today to cover the total cost of her visit?