How much would have to deposit today in one lump sum

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Problem 1: You are planning a large wedding 4 yrs from today when your fiance finishes medical school. You have estimated that you will need $45,000 for this affair. You can earn 3.5% compounded annually on your savings. How much would you have to deposit today in one lump sum to pay for the entire wedding?

Problem 2: A Max, Inc deposited $2,000 in a bank account that pays 12% interest annually. How many periods would it take for the deposit to grow to $6,798 of the interest is compounded semiannually?

Reference no: EM132910564

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