Reference no: EM133030109

Questions -

Q1. Christine made periodic deposits into a savings account at the end of every month for 4 years. The investments were earning 6.90% compounded quarterly and grew to $12,375.00 at the end of 4 years.

a. Calculate the size of the month-end deposits.

b. How long will it take for the $12,375.00 to accumulate to $40,010.00 if the interest rate remained the same and he continued making the same month-end deposits throughout the term?

Q2. Lush Gardens Co. bought a new truck for $52,000. It paid $6,240 of this amount as a down payment and financed the balance at 4.83% compounded semi-annually. If the company makes payments of $1,700 at the end of every month, how long will it take to settle the loan?

Q3. You plan to save money for a down payment of $44,000 to purchase an apartment. You can only afford to save $6,000 at the end of every 6 months into an account that earns interest at 5.50% compounded monthly. How long will it take you to save the planned amount?