1.

You vow to save $300/month for the next six months, with your first
deposit one month from today. If your savings can earn 6%
converted monthly, determine the total in your account six months
from now.
2. You decide to save $200/month for the next ten years. If you invest
all of these savings in an account which will pay you 12 %
compounded monthly, determine:
a) the total in the account ten years
b) the amount you deposited
c) the amount of interest earned
3. You overhear your friend saying the he is repaying a loan at $500
every month for the next 10 months. The interest rate he has been
charged is 12% compounded semiannually. Calculate the amount of
the loan, and the amount of interest involved.
4. You have received two offers on a building lot that you want to sell.
Ms. Armstrongs offer is $50,000 down plus a $100,000 lump sum
payment, 5 % compounded annually
five years from now. Mr.
Belcher has offered $50,000 down plus $5000 every quarter for five
years, 5% compounded quarterly. Compare the economic values of
the two offers. Which is the better offer?