- #1

bap902

- 26

- 0

## Homework Statement

Compute the compound amount after 1 year for $7,700 invested at 8% interest compounded quarterly. What simple interest rate will yield the same amount in 1 year? (Round your answer to 2 decimal places.)

**2. The attempt at a solution**

I did this on my calculator so...

N=4

I%=8

PV=7700

PMT=0

FV=8334.727632

P/Y=4

C/Y=4

The amount compounded in the year is 8334.727632-7700=634.727632. Is that first part right? If so, I still don't know how to get the simple interest rate after finding out the amount compounded.

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## Homework Statement

In 3 years, Jim wants to have $22,090 to buy a new car. How much must Jim save each month if the interest rate is 6% compounded monthly? How much of the $22,090 does Jim actually deposit and how much of it is interest?

**2. The attempt at a solution**

I figured out that Jim must save $561.5705983 per month. Using the calculator:

N=36

I%=6

PV=0

PMT=$561.5705983

FV=22090

P/Y=12

C/Y=12

I'm not sure how to find out how much he actually deposited and how much of it is interest.