Question

5. Steven has just deposited $ 10,000 in a bank account that has
      a 12 percent monthly interest rate. How much will there be in the
      account within three years?

 

6. Suppose you borrow $ 10,000 for four years at 18
           interest cent. How much will the monthly payment of the
           loan?

                 7. You want to withdraw $ 3,000 annually for three years, if the rate of
         interest is 8 percent biannually, how much was the
          initial deposit?

.
       8. Bill plans to deposit $ 200 in a bank account. The bank
           offers you an 8% monthly interest. How much will Bill have in the
           account at the end of 2 and a half years?

       9. You deposit $ 2,500 annually for three years, if the rate of
      interest is 8 percent biannually how much will there be in the
      account at the end of three years?


10. The Smith family plans to buy a new house within
      three years for $ 200,000. They will take a mortgage loan
      to 30 years at the time of purchase. The lenders
      Mortgages generally base the analysis of the loan on
      the gross income of the family, considering 25% of the
      entry to the application of the loan payment. The family
      Smith anticipates that the family income will be
      approximately $ 48,000 at the time of purchase of the house.
      The mortgage interest rate is expected to be close to 9%
      at that moment. The loan will not provide enough
      cash for the purchase of the house. The family will need
      have enough cash saved for the early payment to
      be able to cover the difference of the purchase. They have a
      bank account that pays 6% computed quarterly in
      which they have already saved $ 10,000. They plan
      make quarterly deposits from now until the moment of
      the purchase to save the remaining. How much should each be
      Deposit?

Answer 1

Dear student, only one question is allowed at a time. I am answering the first question

5)

When interest is compounded monthly, interest rate is divided by 12 and time period is multiplied by 12

So, interest rate = 12 / 12 = 1% per month

Time period = 3 x 12 = 36 periods

So, Future value

= Present Value x (1 + r) ^ n

Where,

Present Value = $10,000

r = Rate of interest = 1%

n = Time period = 36

So, Future value

= $10,000 x (1.01 ^ 36)

= $10,000 x 1.430769

= $ 14,307.69