# 1 The Gamma Corp Has Decided To Enter The Next Generation In Customer Service In Ord 2838656

1) The GAMMA Corp. has decided to enter the next generation in customer service. In order to do so they need to purchase a new piece of equipment. The equipment is highly specialized and needs to be created to exact specifications. As a result it will take at least 30 months for the equipment to be ready for installation and will cost a total of \$270,000. GAMMA Corp. wants to set aside the money it needs for the equipment today. Being extremely conservative the company will be placing the funds it needs for the purchase into a GIC with a rate of 2.1% compounded Semi-Annually.

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A- How much money are they setting aside today?

B- What would the interest rate be if they only needed to save \$221,920.32 at the beginning? (Input as a percentage without the % sign)(Remember (-) where appropriate)

C -How much would they need if they had more time to allow money to grow such as if the equipment would be ready in 5.5 Years at a rate of 2.1% Compounded Semi-Annually?

2) Jane is an analyst and their company wants to get a return of atleast 4.4% compounded Quarterly on their investment. Jane will only have use of the money for 12 Months before the company needs it for another project. Jane has been give \$1,200 to invest.

A- If Jane is able to find an investment matching the criteria, how much money will they have after 12 Months?

B- If the rate of return ended up being 11.5% and the company invested their \$1,200. How much would they have after 12 Months?

C- The company liked the 11.5% and decided to leave the money invest until they earned 6,573.13. How long was the money actually invested for in MONTHS? (REMEMBER (-) signs where appropriate).