Solved by verified expert:Question 1 :After placing $13,000 in a savings account paying annual
compound interest of 3%, Leona will accumulate what amount if she leaves the
money in the bank for 4 years?Question 2:Much to your surprise, you were selected to appear on the TV
show, “The Price is Right.” As a result of your prowess in
identifying how many rolls of toilet paper an average American family keeps on
hand, you win the opportunity to choose one of the following: $2,000 today,
$10,000 in 10 years, or $31,000 in 29 years. Assuming you can earn 12% on your
money, which should you choose?Question 3:Alex Karez has taken out a loan of $180,000 with an annual
rate of 10% compounded monthly to pay off hospital bills from his wife’s
illness. If the most Alex can afford to pay is $3,500 a month, how long will it
take to pay off the loan? How long will it take to pay off the loan if he can
pay $4,000 each month? Use five decimal places for the monthly percentage rate
in your calculations. If Alex can pay $3,500 a month, how many years will it
take to pay off the loan?Question 4:To buy a new house, you must borrow $150,000. To do this,
you take out a $150,000, 20-year, 10% mortgage. Your mortgage payments, which
are made at the end of each year (one payment each year), include both
principle and 10% interest on the declining balance. What amount will your
annual payment be?Question 5:You are given three investment alternatives to analyze. The
cash flows from these three investments are as follows:
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