Retractable claws and expanded brain storage capacity

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1. You estimate that you will need $691 thousand in 30 years to buy some cybernetic body enhancements, including infrared vision, retractable claws, and expanded brain storage capacity. To achieve your financial goal, you want to make three equal-sized deposits into an account paying a fixed annual rate of 8.93%. The first deposit will be made right now, the second 10 years from now, and the third 20 years from now. What is the size of each deposit you need to make in order to partake of future cybernetic goodness? (Hint: draw this out on a timeline.)

2. Your mortgage statement says that your loan is at 6.82 percent APR, with monthly payments. What is the effective annual rate on your mortgage (i.e., taking into account the monthly compounding)? Enter answer in percents, accurate to two decimal places.

Reference no: EM131027108

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