About simple interest present value

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Reference no: EM13920150

It is about Simple Interest Present Value

1-Ramon needs $25,000 at the end of 6 months for a down payment on a new house. What amount should he deposit today in an account paying 3.6% simple interest in order to reach his goal?

2-Find the amount Jose should deposit today in order to have $5,000 in his account 6 years from now if the account earns 4% simple interest.

3-Bonnie wants to have $3,000 in her account in 10 years. Find the amount she should deposit today in order to reach her goal if the account earns 3% simple interest.

4-Chuck will pay $8,000 to retire a loan after 2 years. If the principal and interest are repaid in one lump sum, how much did Chuck originally borrow at 2.4% simple interest?

5-Find the amount Scooter should deposit today if he wants $1,000 in his account in 8 years. Assume an interest rate environment of 3% simple interest.

Reference no: EM13920150

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