1. Lee Holmes deposited $16,700 in a new savings account at 6% interest compounded semiannually. At the beginning of year 4, Lee deposits an additional $41,700 at 6% interest compounded semiannually.
At the end of year 6, what is the balance in Lee’s account?
2.Bill Moore is buying a used Winnebago. His April monthly interest at 10% was $134.
What was Bill’s principal balance at the beginning of April?
3.The Treasury Department auctioned $16 billion in three-month (13-week) bills in denominations of thirty thousand dollars at a discount rate of 4.336%.
What would be the effective rate of interest?
2 answers