problem1: Elizabeth has $35,000 in an investment account, but she wants the account to grow to $100,000 in ten years without creating any additional contributions to the account. find out the effective annual rate of interest.
problem2: McGwire Company's pension fund projects that most of its employees will take benefits of an early retirement program the company plans to offer in five (5) years. Anticipating the need to fund these pensions, the company bought zero coupon U.S. Treasury Trust Certificates maturing in five (5) years. When these instruments were originally issued, they were 12% coupon, thirty (30) year U.S. Treasury bonds. The stripped Treasuries are currently valued to yield 10%. Their total maturity value is $6,000,000. Determine their total cost price to McGwire today?
problem3: You are considering purchasing a new, 15,000 dollar car, & you have $2,000 to put toward a down payment. If you can negotiate a nominal yearly interest rate of 10% and finance the car over sixty (60) months, find out your monthly car installments?