How much will you be able to withdraw at end of five years

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Reference no: EM131459827

Quantitative Problem 1: You deposit $1,400 into an account that pays 6% per year. Your plan is to withdraw this amount at the end of 5 years to use for a down payment on a new car. How much will you be able to withdraw at the end of 5 years? Round your answer to the nearest cent. Do not round intermediate calculations.

Quantitative Problem 2: Today, you invest a lump sum amount in an equity fund that provides an 11% annual return. You would like to have $11,100 in 6 years to help with a down payment for a home. How much do you need to deposit today to reach your $11,100 goal? Round your answer to the nearest cent. Do not round intermediate calculations.

Quantitative Problem 3: Bank 1 lends funds at a nominal rate of 6% with payments to be made semiannually. Bank 2 requires payments to be made quarterly. If Bank 2 would like to charge the same effective annual rate as Bank 1, what nominal interest rate will they charge their customers? Round your answer to three decimal places. Do not round intermediate calculations.

Reference no: EM131459827

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