1.

A corporation creates a sinking fund in order to have $480,000 to replace some machinery in 11 years. How much should be placed in this account at the end of each week if the annual interest rate is 8.3% compounded weekly? (Round your answers to the nearest cent.) $ How much interest would they earn over the life of the account? $ Determine the value of the fund after 2, 4, and 6 years.

2 years		$
4 years		$
6 years		$

2.

Carl is the beneficiary of a $27,000 trust fund set up for him by his grandparents. Under the terms of the trust, he is to receive equal installments from this fund at the end of each year over a 7-year period. If the fund earns interest at the rate of 9%/year compounded annually, what amount will he receive each year? Assume that the balance in the fund is zero after the last installment is received. (Round your answer to the nearest cent.)

3.

Find the monthly payment needed to amortize a typical $90,000 mortgage loan amortized over 30 years at an annual interest rate of 5.7% compounded monthly. (Round your answers to the nearest cent.) $ Find the total interest paid on the loan. $

4.

A group of private investors purchased a condominium complex for $3 million. They made an initial down payment of 10% and obtained financing for the balance. The loan is to be amortized over 10 years at an interest rate of 10% per year compounded quarterly. (Round your answers to the nearest cent.) What is the required quarterly payment? $ How much total interest will be paid on the loan? $