Reference no: EM132480148

Question 1 - Starting 1/1/14 and continuing each January 1 for four additional years, Case Corporation will deposit $10,000 in an account that will initially earn interest at a rate of 5%, credited each year on December 31. After the last deposit is made on 1/1/18, the account will earn 10% interest. What will be the approximate amount of the investment fund on December 31, 2020?

a. $66,860

b. $60,782

c. $67,012

d. $70,363

e. $73,546

Question 2 - Bill Gates plans to deposit into the bank a single amount on 9/1/15; he desires to withdraw $10,000 on 9/1/22 and $10,000 on 9/1/23. The Interest Rate is 8%. What single amount must be deposited on 9/1/15 to provide for the withdrawals?

a. $10,805

b. $11,670

c. $17,833

d. $11,238

e. $13,108