1. You are going to withdraw $600 at the end of each year for the next 4 years from an account that pays an interest rate of 6% compounded annually. The account balance will reduce to zero when the last withdrawal is made. How much interest will you earn on the account of the 4-year life?
2. You are borrowing $6000 today. The loan is an amortized 6-year loan with an APR of 8 percent. The loan requires that $1000 of the principal amount be repaid each year. Payments are to be paid annually. What is the amount of the interest for the 3rd year of the loan?
3. You own a bond issued by Lee railroad that promises to pay the holder $100 annually forever. You plan to sell the bond 3 years from now. If similar investments yield 6 percent at that time, how much will the bond be worth?