# Case Study on Motivation

You need to have \$50,000 at the end of 10 years. To accumulate this sum, you have decided to save a certain amount at the end of each of the next 10 years and deposit it in the bank. The bank pays 8 percent interest compounded annually for long-term deposits. How much will you have to save each year (to the nearest dollar)? B) Vernal Equinox wishes to borrow \$10,000 for three years. A group of individuals agrees to lend him this amount if he contracts to pay them \$1 6,000 at the end of the here years.

What is the implicit compound annual interest rate implied by this contract (to the nearest whole percent)? Question No.

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2 a) You have been offered a note with four years to maturity, which will pay \$3,000 at the end of each of the four years. The price of the note to you Is \$10,200. What Is the Implicit compound annual Interest rate you will receive (to the nearest whole percent)? B) Sales of the P. J. Cramer Company were \$500,000 this year, and they are expected to grow at a compound rate of 20 percent for the next six years.

What will be the sales figure at the end of each of the next six years? You need to have \$ 50000 at the end of 10 year.

To accumulate this sum, you have decided to save a certain amount at the end of each year of next 10 years and deposit it in the bank. The bank pay 8 % interest compounded annually for long-term deposits.