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You are considering saving $10,000 in a bank certificate ofdeposit. Stated interest rate is 9%. Find:1. The future value in 20 years with quarterly compounding.2. What is effective rate with quarterly compounding?3. You anticipate needing $30,000 for a down payment on a homein six years. If you earn 6%, how much must you set aside now toachieve this?4. Referring to #3, how much would you have to set aside at theend of each year, instead of now, to achieve the $30,000objective?5. You have begun a 401k at work, contributing $1,000 at the endof each year. How much is your account worth in forty years,assuming a 6% rate of interest?
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