Reference no: EM132963380

Question - A consumer buys goods worth $190. She pays $19 down and will pay $95 at the end of 1 year. If the store charges interest on the unpaid balance at a rate of 4.4%/year compounded monthly during the first two years and at a rate of 8.8%/year compounded monthly thereafter, what final payment will be necessary at the end of 3.5 years?

What sum of money due on October 1, 2027 is equivalent to $7000 due on January 1, 2002 if interest rates were 5.5%/year compounded monthly before January 1, 2010, changed to 9.6%/year compounded monthly from January 1, 2010 to January 1, 2020, and stood at 3.4%/year compounded monthly thereafter? 

What sum of money due on July 1, 2013 is equivalent to $3000 due on January 1, 2006 if interest rates were/are 1.1%/year compounded semi-annually before January 1, 2010 and 5.8%/year compounded quarterly thereafter?