1. How long will it take to accumulate $5,000 to $7,000 if interest rate is 6% compounded
quarterly?
2. How much should be deposited now by Tom Cruise in an investment paying an annual rate of 16% compounded semi-annually to realize $300,000 in five years?
3. Angelina Jolie opens a savings account at a bank. The Bank offers 16% interest per annum as long as no withdrawals are made. As soon as a withdrawal takes place, this rate will automatically drop to 10% per annum starting from the date of withdrawal. Ms. Jolie initially deposits $50,000. The account remains untouched for four years. At the beginning of the fifth year, she withdraws $5,000. Neither deposits nor withdrawals are made for the next four years. How much money does she have eight years after her initial deposit?
4. Tom agrees to make equal payments at the end of each year for 10 years to pay all interest and principal in purchasing a land worth $1,250,000 cash. If money is worth 8% compounded annually, find the annual payment.
5. What equal deposits should be placed by Tom Cruise in a credit cooperative at the end of each year for 12 years in order to have $1,000,000 in the cooperative at the end of 12 years, if the money accumulates at 5%?
6. Angelina Jolie wants to buy a new farm equipment costing $300,000 making a down payment of $50,000. The remainder is to be paid at the end of each month for four years at 20% compounded monthly. Find the amount needed for monthly payments.
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Mrs. Nora Delos Reyes opens a savings account at DAAE Rural Bank. The Bank offers 14% interest per annum as long as no withdrawals are made. As soon as a withdrawal takes place, this rate will automatically drop to 10% per annum starting from the date of withdrawal. Mrs. Delos Reyes initially deposits P55,000. The account remains untouched for four years. At the beginning of the fifth year, she withdraws P8,000. Neither deposits nor withdrawals are made for the next four years. How much money does she have eight years after her initial deposit?
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