How much should you deposit in your account today

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Reference no: EM131909843

1. You want to withdraw $ 21,033 from your account at the end of one year and $ 26,561 at the end of the second year. How much should you deposit in your account today so that you can make these withdrawals? Your account pays 11 percent p.a.

2. You deposit $ 6,848 in your account today. You make another deposit at t = 1 of $ 6,982 . How much will there be in your account at the end of year 1 if the interest rate is 6.8 percent p.a.?

3. Your account pays interest at 6 percent p.a.. You deposit $ 37,177 in it today. You must have exactly $ 72,617 in the account at the end of two years. What should you do at the end of the first year (that is, what dollar amount must you deposit) to ensure this?

4. You invest $ 4,737 in an account today. You make no additional deposits into the account. One year from today there is $ 5,064 in the account. What is the nominal interest rate that you earned on your money?

Reference no: EM131909843

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