# ordered a new computer system

1. The City Library has ordered a new computer system costing \$158,000. The system will be delivered in 6 months, and the full amount will be due 30 days after delivery. How much should be deposited today into an account paying 7.5% compounded monthly to have \$158,000 in 7 months?
2. Mr. and Mrs. Tran are expecting a baby girl in a few days. They want to put away money for her college education now. How much money should they deposit in an account paying 10.2% so they will have \$100,000 in 18 years to pay for their daughter’s educational expenses?
3. Jon’s grandfather was planning to give him \$12,000 in 10 years. Jon has convinced his grandfather to pay him \$6,000 now, instead. If Jon invests this \$6,000 at 7.5% compounded continuously, how much money will he have in 10 years?
4. Lydia’s aunt Rose left her \$5,000. Lydia spent \$1,000 on her wardrobe and deposited the rest in an account that pays 6.9% compounded daily. How much money will she have in 5 years?
5. Jose agrees to pay \$2,000 in one year at an interest rate of 12%. The bank subtracts the discount of 12% of \$2,000, and gives the rest to Jose. Find the amount of the discount and the proceeds to Jose.