ASK YOUR TEACHER \( \begin{array}{l}\text { A retailer owes a wholesaler } \$ 700,000 \text { due in } 45 \text { days. If the payment is } 15 \text { days late, there is a } 1 \% \text { penalty charge. The retailer } \\ \text { can get a 45-day certificate of deposit (CD) earning } 9 \% \text { per year simple interest or a } 60 \text {-day certificate earning } 10 \% \text { per year } \\ \text { simple interest. Is it better to take the } 45 \text {-day certificate and pay on time or to take the } 60 \text {-day certificate and pay late with the } \\ \text { penalty? } \\ \text { The 45-day certificate is better. } \\ \text { The } 60 \text {-day certificate is better. } \\ \text { They are equivalent. }\end{array} \) Need Help?

How much would you need to deposit in an account now in order to have \( \$ 5000 \) in the account in 10 years? Assume the account earns \( 2 \% \) interest compounded monthly.

How much money must you invest now at \( 4.6 \% \) interest compounded continuously in order to have \( \$ 10,000 \) at the end of 6 years?

Michelle invests in a savings account that pays \( 8 \% \) interest compounded monthly. What is the APY for this account? \( \square \) Round to the nearest \( 0.00 \% \)

Juan Martin and Melanie have a new grandson. How much money should they invest now so that he will have \( \$ 74,000 \) for his college education in 18 years? The money is invested at \( 6.35 \% \) compounded annually.

Suppose you have \( \$ 15,000 \) to invest. Which of the two rates would yield the larger amount in 3 years: \( 8 \% \) compounded daily or \( 7.90 \% \) compounded continuously? Which of the two rates would yield the larger amount in 3 years? \( 8 \% \) compounded daily \( 7.90 \% \) compounded continuously