12. Victor owes $8000 to Virginia. The loan is payable in one year at 6% interest. Virginia needs cash to pay medical bi

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12 Victor Owes 8000 To Virginia The Loan Is Payable In One Year At 6 Interest Virginia Needs Cash To Pay Medical Bi 1 (50.16 KiB) Viewed 58 times

12. Victor owes $8000 to Virginia. The loan is payable in one year at 6% interest. Virginia needs cash to pay medical bills, so four months before the loan is due, she sells the note (loan) to the bank. If the bank wants a return of 9% on its investment, how much should it pay Virginia for the note? 13. Suppose that the inflation rate is 3.5% which means that the overall level of prices is rising 3.5% a year. How many years will it take for the overall level of prices to triple? 14. Keisha must pay a lump sum of $6000 in 5 years. What amount deposited today at 8.5% compounded annually will amount to $6000 in 5 years?