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Determine the balance in rita account after five years

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Question 1. Prior to the start of their college studies, Rita Rivera's parents deposited $15,000 on a 5-year Certificate of Deposit (CD) at Liberty Bank that pays 4% interest. Rita will receive the money, plus interest, if she finishes her high school at the end of 5 years. Determine the balance in Rita's account after 5 years.

Question 2. Suppose a Puerto Rico government bond pays $3,255.80 in 4 years to 4% interest. Calculates the current value of the bonus. Determines the value of the bond assuming that it will beat 5% interest in 6 years.

Reference no: EM132833017

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