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Compute maturity value under simple interest is charged

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1. Maruti Motors, Inc., receives a one-year note that carries a 12 percent annual interest rate on $3,000 for the sale of a used car. Compute the maturity value under each of the following assumptions: (1) Simple interest is charged. (2) The interest is compounded semiannually. (3) The interest is compounded quarterly. (Round to the nearest cent.)

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2. Find the present value of (1) a single payment of $24,000 at 6 percent for 12 years, (2) 12 annual payments of $2,000 at 6 percent, (3) a single payment of $5,000 at 9 percent for five years, and (4) five annual payments of $5,000 at 9 percent.

Reference no: EM13914770

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