The pension plan is the annuity with the guaranteed return of 4% per year (compounded quarterly). You can afford to put $1,500 per quarter into fund, and you will work for 40 years before retiring. After retirement, you will be paid the quarterly pension based on the 25-year payout. How much will you get each quarter?
5. Calculate specified quantity.
Simple interest on the $2,000 loan at 4% per year amounted to $240. At what time t did loan mature?
6. Calculate specified quantity.
You take out the 5-month, $4,000 loan at 8% simple interest. How much would you owe at end of five months?
7. I wish to be earning the annual salary of $100,000 when I retire in 25 years. I have been given the job which guarantees the annual salary increase of 4% per year, and starting salary is negotiable. Find lowest salary that I must request to meet my goal?