For each problem, show the formula used and all calculations used.
1. Adam deposited $10,000 in a 5-year CD which pays 4.2% compounded monthly. Find the account value at the end of the 5th year and the amount of interest earned during this 5 year period.
2. Bob wants to have $20,000 available in 3 years. How much should he deposit now if he can get an interest rate of 3.2% compounded quarterly and how much interest will he get?
3 .David deposits $500 at the end of each month for 7 years in an account paying 3.6% compounded monthly. He then puts the total amount on deposit in another account paying 4%interest compounded semiannually for another 8 years. Find the final amount on the deposit after the entire 15 year period.
4. Charles needs $15000 in 5 years. How much must he deposit at the end of each month for 5 years in an account paying 3.9% compounded monthly so that he will have $15000 in 5 years.
5. A $100,000 loan is taken out at 8.22% compounded monthly for 30 years for the purchase of a house. The loan requires monthly mortgage payments.
a) Find the amount of each payment
b)Find the total interest paid over the life of the loan
c)Prepare an amortization schedule for the first 3 months of this mortgage.
payment # / monthly payment / interest period / portion to principal / loan balance