1. How much are you willing to pay for an investment that pays $1,200 one year from today and $600 two years from today if you desire to earn 5% on your investment?

2.Your Bank has agreed to loan you #350,000. You will repay the loan in five years with one lump sum of 516,000 ( covering both the principal and interest) How much ($) of interest are you paying on the loan ?

3. You can deposit your savings at the Darlington National Bank, which offers to pay 12.07 percent interest compounded monthly, or at the Bartlett Bank, which will pay interest of 12.1 percent compounded quarterly. Which bank would offer you highest effective rate? What is the numeric difference between the two effective rates?

4. You just won $100,000 in the state lottery. You actually receive $10,000 at the beginning of each of next ten years. What is the value of your prize if you can invest at 9%?

5. Jimmy invests for his later years. If he saves $100 every month, beginning now, how muh will he have in 50 years if his savings earns 4%, and interest is compounded monthly in the account ? (beg mode)

6. Janice is shopping for a car. She settles on a Prius that costs $25,000 to purchase. She makes a down payment of $5,000. What are her monthly payments on a loan for 48 months at 6%?

7.Sandra and james borrow $197,000 to buy a house. The mortgage rate is 5.5 % and the loan period is 15 years. Payments are made monthly. If the pay the mortgage accordingly to the loan agreement, how much total interest will they pay over the life of their loan?

8.You are considering renting a house with monthly payments of 850 due at the end of each month. You want to set aside enough money today to be able to pay your rent for the next year. If you can earn 8% interest and interest is compounded monthly, how much do you have to save today?