1. An Invoice for $3000 dated Mei 28 with credit term 5/10, EOM was received by Ehara.

He paid $600 on 4 June, $ 400 on June 7, and $1000 on June 17 . (a) What was the total
cash discount on the two payment? (b) What was the balance due after the payments
were made?
2. Calculate the amount of 12 monthly deposits of $5,000 if each payment is made on the
first day of the month and the interest rate per month is 1%. Also calculate the total
interest earned on the deposits if the whole amount is withdrawn on the last day of 12th
month.(due annuity)

3. Hananta deposited $1000 every six months in a fund earning interest at 5%

compounded semiannually. The first deposit was made when she was 20 years of age
and the last deposit was made when she was 25. If she leaves the fund intact, how much
will he have in the fund when she is 28?how much is interest earned?
4. All else equal, the future value _____ as the period of time increases. Choose one of the
following answer and prove it
a. increases b. decreases c. remains constant
5. Five years ago, Fancy had $50,000 in her savings account. Today, she deposited an
additional $6,000. She plans to deposit another $6,000 into this account next year. How
much money will she have in her account ten years from today if she earns 7.5 percent on
her savings?
6. One hundred and fifty years ago, your great-grandfather purchased a 300-acre farm for
the princely sum of $2,000. Today, that farm is still owned by your family and is
currently valued at $1.8 million. What rate of return has your family on this investment
by your great-grandfather ?

DUE ANNUITY