1. You own an 5 year, 5 1/2% simple interest bearing note with a face value (pri
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Question
1. You own an 5 year, 5 1/2% simple interest bearing note with a face value (principal) of $15,000. Three months before the due date of the note you need some money due to an unexpected emergency and decide to sell the note to a friend. If your friend wants to earn 8% simple interest on their investment, how much should your friend agree to pay you for the note? Round your answer off to the nearest whole dollar. 2 You deposit $100 at the end of each quarter in a sinking fund earning 4% compounded quarterly. How many quarterly deposits must you make in order to reach your goal of saving $10,000? Round your answer off to the nearest whole number. 3 For 20 years I invest $100 a month into an account that pays 4.5% compounded monthly. At the end of this time I close out the account and invest the closing balance for the next 25 years in an account paying 5.5% compounded continuously. What is the accumulated amount in the account at the end of the 45 year period? Round your answer off to the nearest penny. 4 For 20 years I invest $200 a month into a retirement account that pays 3% compounded monthly. At the end of this 20 year period I elect to retire.What is the maximum size of equal monthly withdrawals I can take from this account at the end of each month for the next 25 years if the account continues to pay 3% compounded monthly for these 25 years. After the last withdrawal the balance in this account will be $0. Round your answer off to the nearest penny.Explanation / Answer
You deposit $100 at the end of each quarter in a sinking fund earning 4% compounded quarterly. How many quarterly deposits must you make in order to reach your goal of saving $10,000?
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