Reference no: EM131010044
1. If you wished to withdraw $40,000 in 5 years to buy a Mercedes, how much money would you need to deposit today in Citizens Savings Bank if they pay 12 percent interest (compounded monthly)
2. If you had $15,421 to deposit today in Citizens Savings Bank at 10 percent (compounded annually), how many years would you have to wait before you could pay $40,000 in cash for a new Mercedes?
3. If you had $24,836.85 to deposit today in Citizens Savings Bank and wanted to pay $40,000 cash for a new Mercedes in 5 years, what annual interest rate (compounded annually) would the bank have to pay?
4. Terry's father loaned her $15,000 for college expenses. Terry agreed to repay the $15,000 in a lump sum 5 years after graduation. No interest was to be charged. Terry, who is now a senior, has the prospects of marrying a rather wealthy man and wishes to repay the loan on graduation day. Assuming that father can invest the money at 12% interest, how much should he be willing to accept on graduation day rather than waiting 5 years for his money?
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: If you wished to withdraw $40,000 in 5 years to buy a Mercedes, how much money would you need to deposit today in Citizens Savings Bank if they pay 12 percent interest (compounded monthly) If you had $24,836.85 to deposit today in Citizens Savings Ba..
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