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What rate of interest will she need to earn annually

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Q1. What is the amount of the payments that Chris Winslow must make at the end of each of 8 years to accumulate a fund of $91,000 by the end of the 8th year, if the fund earns 8% interest, compounded annually?

Q2. Alan Hitchcock is 37 years old today and he wishes to accumulate $519,000 by his 57th birthday so he can retire to his summer place on Lake Hopatcong. He wishes to accumulate this amount by making equal deposits on his 37th through his 56th birthdays. What annual deposit must Alan make if the fund will earn 12% interest compounded annually?

Q3. Carla Houston has a $25,200 debt that she wishes to repay 4 years from today: she has $17,212 that she intends to invest for the 4 years. What rate of interest will she need to earn annually in order to accumulate enough to pay the debt?

Reference no: EM132915988

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