Question 1. Joe deposited $25,000 in Bank 1. Bank 1 pays 9% interest compounded annually. How much will Joe have in his account after 10 years? Show your work.
Question 2. Mr. Smith wants to buy his son a car in 3 years. The cost of the car is $20,000. Assuming a bank savings rate of 12% compounded quarterly, how much must Mr. Smith put in his bank account today?
Question 3. You decide to invest $7,500 quarterly for 10 years in an ordinary annuity at 8% compounded quarterly. What will be the value of your annuity after 10 years
Question 4. You would like to receive payments of $25,000 at the end of each year for 12 years. How much must you deposit today at 3% compounded annually?