a) Suppose $600 is invested at 5% interest, compounded quarterly for 2.5 years. How much money...

a) Suppose $600 is invested at 5% interest, compounded quarterly for 2.5 years. How much money is in the account after 2.5 years?

b) How much shoukd you pay each year for 15 years into an ordinary annuity that pays 3.15% interest compunsed annually so that at the end, you have $43,000 in the account?

c) A building manager sets up a sinking fund so that there is enough money when the HVAC system needs to be replaced in 6 year. He wants $16,440 to be in the account after 7 years. If the fund earns 4.5% compounded annually, what annual payment is needed?

Expert Solution

ekkarill92 answered 1 year ago

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