(i) Biltmore Homes, a real estate development company, is planning to build five custom homes, ea
(i) Biltmore Homes, a real estate development company, is planning to build five custom homes, each costing $125,000, in years. The Gables Bank pays 6% interest compounded semiannually. How much should the company invest now to have sufficient funds to build the homes in the future?
(ii) Tri-Star Airlines intends to pay off a $20,000,000 bond issue that comes due in 4 years.
How much must the company set aside now, at 6% interest compounded monthly, to accumulate the required amount of money?