Calculate the balance on the account ten years

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Reference no: EM131892206

1. Dave plans to deposit 10,000 per year into an account that pays 7% APR. The first deposit is made one year from today. Calculate the balance on the account 10 years from today. (Round to 2 decimals and assume he makes 10 payments)

2. A loan of $12,000 is being repaid with payments of $1,500 at the end of each year for 10 years. These payments can earn interest at an effective rate of 6% per annum. At the end of the year, this interest is reinvested at the annual effective rate 5% for the first 6 years and only 4% for the second 4 years. Find the yield rate over the 10-year period.

Reference no: EM131892206

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