Question

For 1 and 2 find the compound amount on the given original principal at the compound interest rate for the indicated term:

1. $1200 for 4 years at 4.2% compounded annually.

2. $800 for 5 years at 4% compounded monthly.

3. If you deposit $6800 into an account paying 5% annual interest compounded quarterly, how much will be in the account after 10 years if you make no withdrawals?

4. Suppose you are depositing an amount today in an account that earns 6% interest, compounded annually. If your goal is to have $5000 in the account at the end of the 5 years, how much must you deposit in the account today?

5. What is the monthly payment for a 10 year loan paid monthly for 10 years where the amount of the loan is $80,000 and the annual percentage rate is 3.5%? Please round your answer to the nearest tens place.

Answer 1