What compound rate of interest susan earned on her capital

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Assignment -

Draw the cash flow diagram for all problems.

Problem 1 - If $100 is deposited in a savings account that pays 6% annual interest, what amount has accumulated by the end of the eighth year? How much of this is interest and how much is principal?

Problem 2 - Sam Boilermaker borrows $4000 from his parents for his final year of college. He agrees to repay it at 7% interest in one payment 3 years later. How much does he repay? How much of this is interest and how much is principal?

Problem 3 - Joe Miner has $3000 in his savings account from an inheritance 10 years ago. If the savings account pays interest annually at a rate of 5%, how much was deposited?

Problem 4 - Susan Cardinal deposited $500 in her savings account, and 6 years later, the account has $600 in it. What compound rate of interest has Susan earned on her capital?

Reference no: EM132162327

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