# You deposit \$ 760 in an account one time that compounds monthly at 2 percent. How much will you… 1 answer below »

1.You deposit \$ 760 in an account one time that compounds monthly at 2 percent. How much will you have in your account at the end of 10 years? 2.A balloon payment of \$ 21,000 on your house is due in 10 years. If you can earn an average of 5 percent per year for the 10- year period, how much must you place into an account today to have the \$ 21,000 in 10 years?3.If you want an effective rate of 5 percent, what is an acceptable quoted rate if money is compounded monthly?

4.If inflation averages 4 percent per year, how much purchasing power will \$ 1.00 loose in 10 years?

5.At the beginning of each year, you deposit the following into a growth mutual fund that earns 6 percent per year: Year Deposit

1?5,000.00

2?7,500.00

3?4,500.00

4?5,500.00

5?6,200.00

Total?28,700.00?

How much should the fund be worth at the end of 5 years?

6.Rochelle Kotter wants to attend a university 5 years from now. She will need \$ 88,000. Assume Rochelle’s bank pays 3 percent interest for a 5- year CD compounded monthly. What must Rochelle deposit today to accumulate \$ 88,000 in 5 years?