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How much will have in the savings account after ten year

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Problem 1: Suppose you take out a car loan that requires you to pay $8,000 now, $5,000 at the end of year 1, and $6,000 at the end of year 2. The interest rate is 3% now and increases to 10% in the next year. What is the present value of the payments?

Problem 2: If you invest $7,000 into a savings account at an annual interest rate of 9%, compounded continuously, how much will you have in the savings account after 10 years?

Reference no: EM132902510

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